Stifel believes that Electrical Equipment/Multi-industry companies are still open to making M&A deals. Within the sector, the firm thinks that an acquisition of Hubbell (HUB.A, HUB.B) by Eaton (ETN) would be the most logical transaction. The firm says that such a deal would create value over the long-term, driving 15% EPs accretion for Eaton, improving the fundamentals of its electrical business and increasing its late cycle exposure.

Reports Q1 revenue $431M, consensus $427.89M. "Barnes continues to advance our business transformation strategy with solid first-quarter results, additional long-term Aerospace agreements benefiting from our MB Aerospace acquisition, and the completed sale of the Associated Spring and Hanggi businesses in April," said Thomas J. Hook, President and CEO of Barnes. "Following the divestiture, an increasing majority of our earnings are driven by Aerospace, where we are investing to take full advantage of strong demand and attractive growth opportunities. And we continue to integrate, consolidate, and rationalize our Industrial business to further optimize our portfolio for long-term profitable growth. Our comprehensive strategic review is ongoing, and we remain committed to reshaping and positioning Barnes to maximize value for our shareholders. We look forward to sharing our ongoing progress."