Teledyne (TDY) PT Raised to $520 as Jefferies Another Leg Up From FLIR Acquisition

Jefferies analyst Sheila Kahyaoglu raised the price target on Teledyne (NYSE: TDY) to $520.00 (from $480.00) on the belief that 2021 is set up to be a year of outperformance as MSD revenue growth should drive productivity, enhanced by the acquisition of FLIR, which is expected to close in Mid-May. The analyst expects ~20% cash accretion from the deal in 2022 which should drive the next leg up with TDY typically conservative in its initial synergy planning.

The analyst reiterated a Buy rating, stating "Q1 outperformance was driven by operations with better drop through of a better than expected topline. On a GAAP basis, near-term performance is hindered by deal costs, which masks the underlying cash performance. We are shifting our estimates to adjusted EPS to better align with cash returns and integrate FLIR into our numbers. We revise our 2021/2022 adjusted EPS estimates to $12.25 and $13.15 from $11.45 and $12.45, respectively".

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