Several industrial stocks were on the move on Monday after one Wall Street analyst adjusted his coverage and named his top sector stock picks for 2023.
The Analyst: Bank of America analyst Andrew Obin has issued the following industrial stock ratings changes:
- Montrose Environmental Group Inc MEG upgraded from Neutral to Buy, $51 price target reiterated.
- Johnson Controls International PLC JCI downgraded from Buy to Neutral, price target cut from $85 to $72.
- Rockwell Automation Inc ROK downgraded from Buy to Neutral, $275 price target reiterated.
- Trane Technologies PLC TT downgraded from Neutral to Underperform, price target cut from $185 to $160.
- Vontier Corp VNT downgraded from Buy to Neutral, price target cut from $30 to $21.
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The Thesis: In his 2023 outlook for the industrial sector, Obin said the first half of 2023 may be difficult for the sector, but he is cautiously optimistic about the second half of the year. Obin said industrials are well-positioned to grow revenue, even if the U.S. economy slips into a recession.
“A combination of pricing momentum, backlogs, reshoring, US stimulus funds, and international diversification should enable our sector to have modest revenue growth in 2023,” he said.
In addition to his ratings changes, Obin named the following seven stocks as his top industrial stock picks for 2023:
- Fortive Corp FTV
- Honeywell International Inc HON
- Dover Corp DOV
- Emerson Electric Co EMR
- General Electric Company GE
- PTC Inc PTC
- APi Group Corp APG
Related Link: Overview Of Value Stocks In The Industrials Sector
Benzinga’s Take: Bank of America has a wide range of ratings for the industrial stocks it covers heading into 2023, suggesting stock selection within the sector will be critical. If the U.S. economy worsens in the first half of the year, investors can look for opportunities to buy the dip in top industrial stocks in anticipation of what could be a strong second half of 2023.
Image and article originally from www.benzinga.com. Read the original article here.