Salomon Smith Barney downgraded its investment rating on shares of TRW Inc. (TRW) to neutral from buy. On Feb. 19, the company announced the resignation of CEO David Cote. TRW also reaffirmed its guidance of $3.30 EPS from operations for 2002.
Analyst Matthew Stover says the downgrade was based on based on two things: valuation, as the stock was trading within 5% of his $44 price target; and the resignation of Cote, as it removes an important catalyst for change at TRW. Cote's presence had been a prime factor supporting his investment thesis. Stover notes that Cote will assume the CEO role at Honeywell (HON).