Broadpoint.AmTech Sees Trading Opportunity In Triumph Group (TGI)

June 8, 2009 10:44 AM EDT

Broadpoint.AmTech is making a short-term trading call on Triumph Group, Inc. (NYSE: TGI), calling the stock "way too cheap!" The firm reiterates their price target and $57 price target.

Analyst Peter Arment notes, "We continue to believe that many aerospace suppliers can support much higher trough earnings valuations based on a recovery commencing in 2010. GR remains our top pick to play the aftermarket trough in 2009. TGI also has aftermarket exposure topping 30% of sales. However, TGI shares have not enjoyed the same recovery as GR shares as of late. Historically TGI has over a 90% trading correlation to that of GR. The recent lag in TGI shares has created a short-term trading opportunity."

Arment notes that if TGI returns to following the historical .924 correlation to that of Goodrich (NYSE: GR), TGI should rise to the mid-$50s, or over 25% from current levels.

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