United Tech shares up after 2011 forecast
(Reuters) - Shares of United Technologies Corp (UTX.N) rose 1 percent Friday morning, a day after the diversified U.S. manufacturer said profit could rise 7 percent to 14 percent next year.
The stock's gains reversed a decline in postmarket trading Thursday after the company released its forecast. Analysts said the low end of the forecast reflected a conservative approach.
"We believe UTC's outlook includes many conservative assumptions," Sterne Agee analyst Nick Heymann wrote in a note to clients.
United Tech shares rose $1.01 to $78.64 in early trading on the New York Stock Exchange.
Chief Executive Louis Chenevert told investors on Thursday that the company expects organic revenue -- which exclude acquisitions and the effect of currency fluctuations -- to rise 3 percent to 5 percent next year as strong demand in emerging economies offsets an unsteady U.S. recovery.
"(United Tech) has embedded relatively conservative 3.3 percent growth in 2011, which is driving the slightly weaker 3 to 5 percent core growth projection," Deutsche Bank analyst Nigel Coe wrote in a note to clients.
The Hartford, Connecticut-based company's shares are up about 12 percent this year, outpacing a 9 percent gain in the Dow Jones industrial average .DJI, of which it is a component.
United Tech is among a group of major U.S. manufacturers setting out their 2011 expectations this month. Earlier this week 3M Co (MMM.N) forecast organic sales growth of 5.5 percent to 7.5 percent, warning that economic headwinds might bring it in short of its long-term growth target of 8 percent to 9 percent and sending its shares down.
General Electric Co (GE.N) and Honeywell International Inc (HON.N) are due to weigh in next week.
(Reporting by Scott Malone; editing by John Wallace)
Credit: Reuters (www.reuters.com)
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