Praise for ISI Group’s David Raso seems to know no end. “The way he questions managements is far more probing than other analysts’,” says one portfolio manager. Another commends Raso, 43, for providing “great, detailed surveys of the global machinery food chain.” These are among the attributes that propel the researcher to his 13th straight year at the top — and he stands alone among the 12 Hall of Famers currently in first place in that he has never ranked below No. 1. Raso maintains ratings on 12 of the 18 companies he actively tracks. His proprietary fieldwork found inventory reductions across the supply channel, a change that has prefigured earnings and valuation surges. Accordingly, in January he upgraded Dublin-based Eaton Corp., an industrial-equipment maker, from hold to buy. By the end of August, its New York–listed shares had jumped 19.2 percent, from $53.11 to $63.32. They remain a buy thanks to Eaton’s volume growth and debt reductions. Raso has also been advising investors to buy CNH Global since January. The Amsterdam-based agricultural and construction equipment producer’s imminent merger with Italy’s Fiat Industrial will boost earnings visibility and cut costs, he believes. Elevated from hold, at $40.29, the New York–traded shares advanced to $46.95 through August. — Ben Mattlin |
The 2013 All-America Research Team: Machinery, No. 1: David Raso
