Broadpoint.AmTech Reiterates a 'Buy' on BE Aerospace (BEAV); Price Target Raised
BEAV Hot Sheet
Rating Summary:7 Buy, 3 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 16 | Down: 7 | New: 23
Broadpoint.AmTech reiterates a 'Buy' on BE Aerospace (Nasdaq: BEAV), price target increased from $15 to $19.
Broadpoint analyst says, "Based on our analysis, even a further cut to BEAV earnings in 2009 could result in higher price appreciation given the current low trough valuation. BEAV’s $1 billion non-discretionary consumables business coupled with a large installed base of products topping $7.3 billion has the company well-positioned as air travel recovers in 2010...Even if a 30% cut to the Commercial Aircraft and Distribution segment earnings in 2009 were assumed, the fair value range for BEAV would still remain $10-$15 per share. We believe the current P/E multiple has further expansion given the likelihood of a consumable spare parts recovery commencing in 2010. BEAV stock could support as high as a 15x P/E multiple on trough earnings; we are utilizing 13x for our new $19 price target. Given our belief that a further 30% haircut in 2009 earnings is unlikely, the downside in BEAV shares appears limited at current prices...While BEAV stock is up 66% year-to-date and 115% since the March 6 low, the valuation has just now reached 10x earnings. With 2009 setting up to potentially be a trough earnings year, we believe long-term investors should continue to build positions."
To see more analyst ratings on BEAV Click Here.
BE Aerospace, Inc. is manufacturer of cabin interior products for commercial aircraft and business jets and the world’s distributor of aerospace fasteners and consumables.
Broadpoint analyst says, "Based on our analysis, even a further cut to BEAV earnings in 2009 could result in higher price appreciation given the current low trough valuation. BEAV’s $1 billion non-discretionary consumables business coupled with a large installed base of products topping $7.3 billion has the company well-positioned as air travel recovers in 2010...Even if a 30% cut to the Commercial Aircraft and Distribution segment earnings in 2009 were assumed, the fair value range for BEAV would still remain $10-$15 per share. We believe the current P/E multiple has further expansion given the likelihood of a consumable spare parts recovery commencing in 2010. BEAV stock could support as high as a 15x P/E multiple on trough earnings; we are utilizing 13x for our new $19 price target. Given our belief that a further 30% haircut in 2009 earnings is unlikely, the downside in BEAV shares appears limited at current prices...While BEAV stock is up 66% year-to-date and 115% since the March 6 low, the valuation has just now reached 10x earnings. With 2009 setting up to potentially be a trough earnings year, we believe long-term investors should continue to build positions."
To see more analyst ratings on BEAV Click Here.
BE Aerospace, Inc. is manufacturer of cabin interior products for commercial aircraft and business jets and the world’s distributor of aerospace fasteners and consumables.
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