Drexel Hamilton Upgrades Teledyne (TDY) to Buy; Raising PT and Estimates on Bounceback Into Military Programs

June 6, 2012 8:38 AM EDT Send to a Friend
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Price: $106.42 +0.18%

Rating Summary:
    2 Buy, 2 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 13 | Down: 18 | New: 41
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Drexel Hamilton upgraded Teledyne (NYSE: TDY) from Hold to Buy with a price target of $65.00 (from $60.00).

Analyst, Richard Whittington, said, "2012 revenues and earnings are held beneath consensus at $2.05bn and $4.04 per share from near-term cyclical softness and defense reductions...Largely commercial aerospace, instrumentation and energy acquisitions the past year have re-oriented TDY from prior military program reliance...BlueView acoustic imaging sensors and LeCroy test & measurement bolster earlier business adds in electronic interconnect and imaging...These deals should help Teledyne buffer forthcoming defense spending cuts where better than 1/3 of sales and nearly as much in profits derive."

"Dovetailing with global demand trends, these lead to 5-year sales and earnings CAGRs to 5.4% and 6.5% from 4.8% and 5.9% previously...Our new 2014-2016 per share estimates are now $4.59, $4.91 and $5.24, respective $0.14, $0.15 and $0.15 increases over our prior model."

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

Shares of Teledyne closed at $58.51 yesterday.


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