SPX Corp (SPW) Higher On New Buy Call

Shares of SPX Corporation (NYSE: SPW) are higher Monday after winning over a new bull on the stock.

Credit Suisse initiated coverage on SPX with an Outperform rating and $100 price target, suggesting 25 percent upside.

Power and automation, which represent 70 percent of SPX's sales, remain two of the firm's preferred industrial end markets as the offer upside versus consensus expectations.

"SPX should hit an above sector average organic sales growth rate in 2012, given its late-cycle demand exposure, analyst S. Kahyaoglu said. "Thematically, the renewed momentum behind non-nuclear forms of power generation, and the increased regulation around food hygiene standards in emerging markets, should prove supportive for SPX's top-line."

While margins are currently weak, they should see acceleration in 2012 as the better-priced power orders booked in 2011 are reflected in the P&L, the analyst notes.

Shares of SPX are up 1 percent to $80.51 info the close Monday.

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