UBS on American Aerospace: Commercial Aftermarket Survey - Strongest Spares Pricing Since 2007-08
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Price: $66.11 +1.36%
Rating Summary:
10 Buy, 4 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 12 | New: 30
Rating Summary:
10 Buy, 4 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 12 | New: 30
Trade BEAV Now!
UBS on American Aerospace: Commercial Aftermarket Survey - Strongest Spares Pricing Since 2007-08
UBS analyst says, "FAA repair station survey is indicator for aerospace aftermarket: Our survey of worldwide FAA repair stations that perform maintenance, repair and overhaul (MRO) services for airlines and other operators reflects relatively strong aftermarket conditions highlighted by higher annual spares price increases than in past few years."
"Forecast low to mid single digit volume growth: In line with our prior two surveys, respondents continue to forecast low to mid single digit volume increases despite average to below normal backlogs and lower airline capacity growth. Only 11% of respondents noted a negative impact from airline capacity reductions."
"Many see 5%+ spares price increases: Respondents highlighted strongest spares pricing since late 2007 (2008 price increases) with roughly one quarter citing 5%+ annual price increases."
"Supports aftermarket view; raising BE Aerospace (Nasdaq: BEAV) / Transdigm Group (NYSE: TDG) price targets We believe our survey supports our view that the aftermarket can continue to come through strong even with slowing economic and airline capacity growth. On the back of this, we are increasing our price targets on BEAV to $47 from $42 and TDG to $110 from $103."
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UBS analyst says, "FAA repair station survey is indicator for aerospace aftermarket: Our survey of worldwide FAA repair stations that perform maintenance, repair and overhaul (MRO) services for airlines and other operators reflects relatively strong aftermarket conditions highlighted by higher annual spares price increases than in past few years."
"Forecast low to mid single digit volume growth: In line with our prior two surveys, respondents continue to forecast low to mid single digit volume increases despite average to below normal backlogs and lower airline capacity growth. Only 11% of respondents noted a negative impact from airline capacity reductions."
"Many see 5%+ spares price increases: Respondents highlighted strongest spares pricing since late 2007 (2008 price increases) with roughly one quarter citing 5%+ annual price increases."
"Supports aftermarket view; raising BE Aerospace (Nasdaq: BEAV) / Transdigm Group (NYSE: TDG) price targets We believe our survey supports our view that the aftermarket can continue to come through strong even with slowing economic and airline capacity growth. On the back of this, we are increasing our price targets on BEAV to $47 from $42 and TDG to $110 from $103."
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