Salomon Lowers TRW Opinion
Salomon Smith Barney downgraded its investment rating on shares of TRW Inc. (TRW ) to neutral from buy. On Feb. 19, the company announced the resignation of CEO David Cote. TRW also reaffirmed its guidance of $3.30 EPS from operations for 2002.
Analyst Matthew Stover says the downgrade was based on based on two things: valuation, as the stock was trading within 5% of his $44 price target; and the resignation of Cote, as it removes an important catalyst for change at TRW. Cote's presence had been a prime factor supporting his investment thesis. Stover notes that Cote will assume the CEO role at Honeywell (HON ).