KeyBanc Upgrades Astronics (ATRO) to Buy on Increased Confidence

February 11, 2013 7:54 AM EST Send to a Friend
Get Alerts ATRO Hot Sheet
Price: $58.00 -1.83%

Rating Summary:
    4 Buy, 2 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 26 | Down: 32 | New: 6
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KeyBanc upgraded Astronics (NASDAQ: ATRO) from Hold to Buy with a price target of $30.00.

The firm comments, "We are upgrading shares of Astronics Corporation to BUY from HOLD following the release of 4Q12 results as we have gained additional confidence over the last several quarters in management's ability to fund elevated levels of R&D while sustaining solid margins within the aerospace business and believe the Company's growth prospects, particularly in the bizjet market, offer investors a compelling risk/reward at current levels. Additionally, our concerns around an overly conservative initial outlook for 2013 have been alleviated and the selling pressure from the largest shareholder has abated, allowing us to become more constructive on the Company."

For FY13 the firm is modeling for revenues of $302.5 million, down slightly from prior estimate of $309.9 million as they have lowered anticipated growth rates for both test systems and the military segment. This represents year-over-year revenue growth of 14.1%. The firm is modeling for FY13 EPS of $1.83, up from $1.77 to account for a lower tax rate due to the recent extension of the R&D tax credit for both 2012 and 2013. The firm is also introducing 2014 estimates, modeling for revenue of $336.9 million and EPS of $2.13.

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

Shares of Astronics closed at $24.91 yesterday.




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