2/8/2010- Morgan Stanley analysts are raising their estimates, price target and rating for Ingersoll-Rand (NYSE:IR).

The bank upgraded the stock to "equal weight" from "underweight" with a $36 price target.

Analysts Robert Wertheimer, Scott Davis, and Joseph O'Dea said, "Our previously UW rating was partially based on a view that pricing would erode on large commercial construction projects, i.e. IR's Applied HVAC and security products. Recent earnings at Stanley Works (Security), Emerson (HVAC), and Lennox (HVAC) point toward improvement in IR end-markets. Stanley's mechanical security business, like IR's, is posting exceptional margins. HVAC industry unitary sales rose materially for the first time in years in November. Despite the positive signals, however, we remain cautious on commercial/applied HVAC and downside to Security margins."

Morgan Stanley sees fiscal 2009 EPS of $1.46, vs. the consensus estimates of $1.70, and fiscal 2010 EPS of $2.15, vs. the consensus estimates of 2.25.

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