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Ingersoll-Rand may split into two companies, Stifel says

Published 07/10/2017, 09:36 AM
© Reuters.  Ingersoll-Rand may split into two companies, Stifel says
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  • Ingersoll-Rand (IR +0.4%) may consider a separation into two companies if it does not garner a premium multiple in line with the group in the near- to medium-term for a strong Climate Solutions portfolio and execution in U.S. residential and non-residential markets, Stifel's Robert McCarthy says.
  • The analyst, who rates shares a Buy, sees close to 20% upside for IR on a sum of the parts valuation; the Climate segment contributed 78% of IR’s revenue in 2016.
  • McCarthy sees similar upside for Hold-rated United Technologies (UTX), but says it would be hard to separate Pratt & Whitney's large commercial engine program from the overall company given the intense, long investment cycle required and the need for free cash flow contributed by the commercial sides of the business.
  • Source: Bloomberg First Word
  • Now read: Boeing (NYSE:BA) 737 MAX Grounded: No Worries


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