NEW YORK – October 5, 2017 – Melius Research (Melius), an independent equity research boutique focused on the industrial sector today announced that it has initiated coverage of the multi-industry sector, led by Scott Davis, Chairman and Chief Executive Officer of Melius.
With 28 names in total, Davis’ coverage includes large-cap companies, such as General Electric, Emerson, 3M, Honeywell and Danaher, but will span market capitalizations. The initiation follows Melius’ initiation of 19 global aerospace and defense companies, led by Founding Partner and Melius President, Carter Copeland. In addition, Melius expects to initiate coverage on the global machinery sector within the next week.
“Our outlook is very positive on the long-term trends in the industrial space. Years of under-investment will soon see the U.S. playing catch-up on infrastructure and general capital spending,” said Davis. “Disruptive technologies such as 3D printing and the Internet of Things should further fuel an entirely new cycle of investment and we expect industrial companies will begin to matter increasingly to U.S. investors going forward.”
The initiation report looks at opportunities in the multi-industry sector and introduces the new Melius Real PMI Index, which will be used in conjunction with the Melius Sentiment Indices to provide predictive value. Highlights from the report include:
Positive View on Multi-Industry Sector
- We see a solid upcycle in process that is only about 25% played out.
- We are excited about the prospect for a capital spending and infrastructure spend resurgence in the U.S.
- We see the makings of a full blown Emerging Market recovery.
- We see activism as the new reality in industrials and de-conglomeration as a theme still in play.
Above Consensus on 75% of Multi-Industry Stocks
- We are above consensus on 75% of our stocks. 13 of our 28 names have positive ratings.
- Our highest rated Buy stocks include GE, Emerson, ITT and Rexnord.
- Overweight rated names include Danaher, Dover, Eaton, Fortive, HD Supply, Honeywell, Rockwell Automation, Roper Technologies and Xylem Inc.
Davis brings more than 25 years of industrial research experience and has been the #1 ranked Multi-Industry analyst since 2010 according to the annual Institutional Investor All-America Research survey. Davis has been highly ranked since 2004 and was a top-two or -three analyst in packaging in 2001 and 2002. Prior to Melius Research, Davis spent 6 years as a Managing Director and Head of the Global Industrials Research Group at Barclays Plc and 15 years at Morgan Stanley, where he served as a Managing Director and Head of Global Industrials Research.
About Melius Research
Based in New York City, Melius Research was founded in October 2017 as an independent equity research boutique focused on the industrials sector. The team of seventeen professionals includes top-ranked Multi-Industry analyst Scott Davis, top-three ranked Global Aerospace and Defense analyst Carter Copeland and top-three ranked Global Machinery analyst Rob Wertheimer. Melius’ independent research offering is based on extensive cycle experience, differentiated and dedicated corporate access and a data-centric approach. Melius utilizes vast data sets and leading edge analytics in our process in the journey to help our clients make better informed investment decisions.