Precision Castparts (PCP) Higher on Surprise FY16 Guidance, Analyst Takes PT to $215

January 25, 2013 11:11 AM EST Send to a Friend
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Price: $223.47 -0.26%

Rating Summary:
    15 Buy, 2 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 24 | Down: 28 | New: 14
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Yesterday Precision Castparts Corp. (NYSE: PCP) reported weaker than expected Q3 results. However, despite the miss, Precision Castparts stock climbed on Thursday morning, a rally that was tied in part to positive comments on a follow up earnings call.

"The company has historically not provided any concrete guidance, but with the closure of the TIE acquisition, and the increased earnings power, the company felt it was important to set a baseline, guiding to FY16 EPS of between $15.50-16.50," said Imperial Capital analyst Ken Herbert. "We have adjusted our FY13, FY14, and FY15 EPS estimates to $9.71, $12.09, and $14.00, respectively."

Herbert said he believes the market will continue to look past current quarter results and focus on forward earnings, strong cash flows, margins, and execution capabilities.

"We believe sentiment on PCP will continue to improve as the cycle expands and the company successfully integrates its recent acquisitions," concluded the analyst.

Imperial Capital reiterated an Outperform rating on Precision Castparts and raised its price target of $215.00 (from $190.00).

For an analyst ratings summary and ratings history on Precision Castparts (NYSE: PCP) click here. For more ratings news on Precision Castparts click here.

Shares of Precision Castparts closed at $191.22 yesterday.


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