|
|
|
ONLINE FEATURES
Book Reviews
BW Video
Columnists
Interactive Gallery
Newsletters
Past Covers
Philanthropy
Podcasts
Special Reports
BLOGS
Auto Beat
Bangalore Tigers
Blogspotting
Brand New Day
Byte of the Apple
Economics Unbound
Eye on Asia
Fine On Media
Green Biz
Hot Property
Investing Insights
Management IQ
NEXT: Innovation
NussbaumOnDesign
Tech Beat
Working Parents
TECHNOLOGY
J.D. Power Ratings
Product Reviews
Tech Stats
Wildstrom: Tech Maven
AUTOS
Home Page
Auto Reviews
Classic Cars
Car Care & Safety
Hybrids
INNOVATION
& DESIGN Home Page Architecture Brand Equity Auto Design Game Room SMALLBIZ Smart Answers Success Stories Today's Tip INVESTING Investing: Europe Annual Reports BW 50 S&P Picks & Pans Stock Screeners Free S&P Stock Report SCOREBOARDS Hot Growth 100 Mutual Funds Info Tech 100 S&P 500 B-SCHOOLS Undergrad Programs MBA Blogs MBA Profiles MBA Rankings Who's Hiring Grads |  |
NOVEMBER 21, 2005
United Technologies: Going Up?  All year, shares of United Technologies (UTX
) have been locked in a tight range of 49 to 54 -- in part because the company is a conglomerate. Once the darling of investors, the group has long been out of favor. With the stock now at 52, or 14 times 2006 estimated earnings of $3.50 a share, it trails its peers. This is an "attractive entry point to a stock worth 60," argues Owen Fitzpatrick of Deutsche Bank Private Banking (DB
), which owns shares. He notes that its major units are leaders in their fields: Pratt & Whitney, one of the Big Three jet-engine makers, accounts for 29% of total sales and 34% of earnings; Otis Elevator, tops in lifts and escalators, pulls in 24% of sales and 34% of profits; and air-conditioner and heater leader Carrier kicks in 29% of sales and 20% of profits. Fitzpatrick sees a continued rise in aerospace and solid gains at Otis and Carrier. Also high on UT is Steve Binder of Bear Stearns (BSC
) -- which has done banking for UT -- who rates it "outperform." He sees profits of $3.11 a share in 2005 and $3.50 in 2006, up from $2.65 in 2004. The best barometer of the health of UT's core businesses is free cash flow: $906 million in the third quarter vs. $741 million a year ago, says Binder.
Note: Unless otherwise noted, neither the sources cited in Inside Wall Street nor their firms hold positions in the stocks under discussion. Similarly, they have no investment banking or other financial relationships with them.  By Gene G. Marcial
BW MALL
SPONSORED LINKS
Get BusinessWeek directly on your desktop with our RSS feeds.
Buy a link now! Add BusinessWeek news to your Web site with our headline feed. Click to buy an e-print or reprint of a BusinessWeek or BusinessWeek Online story or video. To subscribe online to BusinessWeek magazine, please click here. Learn more, go to the BusinessWeekOnline home page  | | |
 Copyright 2005, by The McGraw-Hill Companies Inc. All rights reserved.Terms of Use | Privacy Notice |
Printer-Friendly Version