Takeover Attractiveness Saves Esterline Tech (ESL) from the Abyss - UBS

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UBS boosted its price target on Esterline Tech (NYSE: ESL) sharply, but stopped short of upgrading its Neutral rating. The firm said takeover potential balances defense risk.

The firm's price price target moves from $58 to $70 and FY13 EPS estimate moves to $5.35 from $5.55 as the incorporate $0.20 Q1 miss.

Commenting on takeover potential, the analyst said: "While we continue to think ESL should trade at a discount to aerospace given its meaningful defense exposure and mixed execution track record, we see it as an increasingly attractive acquisition candidate for a larger aerospace company given activist involvement and margin differential relative to other aerospace companies with similar exposure to the aerospace after market."

For an analyst ratings summary and ratings history on Esterline Tech click here. For more ratings news on Esterline Tech click here.

Shares of Esterline Tech closed at $69.06 yesterday, with a 52 week range of $51.13-$76.86.

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