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Gardner Denver initiated with an Equal Weight at Morgan Stanley. Morgan Stanley analyst Joshua Pokrzywinski initiated Gardner Denver with an Equal Weight rating and a price target of $30.

3M initiated with an Equal Weight at Morgan Stanley. Morgan Stanley analyst Joshua Pokrzywinski initiated 3M with an Equal Weight rating and a price target of $212. The analyst notes that the company has managed risks appropriately to prepare for a potential 2019 slowdown across the industrials, but adds that its valuation still puts it at only a modest peer group relative discount from the historical perspective, stating that there is little upside to valuation from the stock's current levels.

Eaton initiated with an Equal Weight at Morgan Stanley. Morgan Stanley analyst Joshua Pokrzywinski initiated Eaton with an Equal Weight rating and a price target of $86. The analyst notes that while the company is well positioned in the near term with its persisting short-cycle strength in Electrical Products and Hydraulics, the bulls may be disappointed in 2019 as Eaton's restructuring savings taper off and its operating leverage returns to its "modest historical levels".

Illinois Tool Works initiated with an Equal Weight at Morgan Stanley. Morgan Stanley analyst Joshua Pokrzywinski initiated Illinois Tool Works with an Equal Weight rating and a price target of $146. The analyst notes that while the company is "positioned as a defensive industrial" based on the high quality nature of its portfolio, its markets are cyclical, with less room for margin expansion to come in the next 12 months. While he does not believe that Illinois Tool Works cut operating costs "too deep to grow", he notes that "there has been both organic and M&A opportunity cost" in its capital decision.

Colfax initiated with an Equal Weight at Morgan Stanley. Morgan Stanley analyst Joshua Pokrzywinski initiated Colfax with an Equal Weight rating and a price target of $34.

Johnson Controls initiated with an Equal Weight at Morgan Stanley. Morgan Stanley analyst Joshua Pokrzywinski initiated Johnson Controls with an Equal Weight rating and a price target of $40. The analyst notes that there is little value to the proposed Power Solution business spin-off, and the sale would be dilutive. Pokrzywinski adds that the valuation on the shares looks attractive at about a 30% discount relative to peers.

Parker-Hannifin initiated with an Equal Weight at Morgan Stanley. Morgan Stanley analyst Joshua Pokrzywinski initiated Parker-Hannifin with an Equal Weight rating and a price target of $185.

Rockwell Automation assumed with an Underweight at Morgan Stanley. Morgan Stanley analyst Joshua Pokrzywinski assumed Rockwell Automation with an Underweight rating and a price target of $163, compared to the firm's prior rating of Equal Weight and a price target of $192. The analyst states that the company's "automation end markets have lost some of their secular outgrowth potential", while the competition is limiting its growth in software verticals.

Hubbell assumed with an Overweight at Morgan Stanley. Morgan Stanley analyst Joshua Pokrzywinski assumed Hubbell with an Overweight rating and a price target of $133 as part of his broader research note on Electrical Equipment & Multi-Industry Industrial stocks. The analyst contends that the company's risk-reward is favorable in terms of fundamentals and on valuation as its price/cost challenges and lighting sector conditions are improving.