Morgan Stanley Initiates Coverage of Ingersoll Rand with Equal-Weight

Morgan Stanley's equal-weight recommendation for Ingersoll Rand suggests a potential 20.53% upside, despite projected revenue decline. Strong fund sentiment with increasing institutional ownership may positively impact stock performance.

Date: 08-09-2024

AI Rating: 6

Morgan Stanley has initiated coverage of Ingersoll Rand (NYSE: IR) with an Equal-Weight recommendation. This type of recommendation indicates that the analyst believes the stock will perform in line with the broader market, which may lead to a neutral sentiment among investors.

The analyst price forecast suggests a potential 20.53% upside, with an average one-year price target of $104.67/share compared to the latest closing price of $86.84/share. This forecast may encourage investors looking for growth opportunities.

However, the projected annual revenue for Ingersoll Rand is $6,607 million, representing a decrease of 6.09%. A declining revenue projection can be concerning, as it may indicate potential challenges in maintaining profitable operations, which can negatively affect stock prices.

In terms of Earnings Per Share (EPS), the projected annual non-GAAP EPS is 2.83. This figure provides insights into the company’s profitability, but without context or comparisons to previous periods, it is difficult to gauge its overall impact.

The analysis of fund sentiment shows that there are 1,725 reported positions in Ingersoll Rand, with an increase of 38 owners (2.25%) in the last quarter. The average portfolio weight dedicated to IR is 0.26%, up by 6.42%. Overall, total shares owned by institutions have increased by 6.54% to 506,789K shares. This increase in institutional ownership suggests growing confidence from funds, which can be a positive indicator for potential investors.

Additionally, the put/call ratio of 0.53 signifies a bullish outlook among traders, indicating that there may be more investors buying calls than puts, which typically suggests an expectation of upward movement in stock prices.

Some notable changes in positions include Capital International Investors increasing its shares by 15.27%, while Price T Rowe Associates decreased its holding by 4.98%. Other institutions like Capital Research Global Investors and Capital World Investors have shown significant increases in their shareholdings, indicating positive sentiment from large fund managers.

Stocks: IR