KeyBanc Cuts Price Target on Esterline Tech (ESL), Calls Today a Buying Opportunity
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Price: $122.49 --0%
Rating Summary:
1 Buy, 10 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 19 | Down: 16 | New: 9
Rating Summary:
1 Buy, 10 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 19 | Down: 16 | New: 9
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KeyBanc is reiterating its Buy rating on shares of Esterline Tech (NYSE: ESL) and is lowering its price target from $94 to $87.
The company released its third quarter results below expectations, but the firm states that it was a number of moving parts and one-time items that negatively impacted the quarter. As a result, KeyBanc notes that investors may now have uncertainty regarding the company's core business although it was actually ahead of expectations.
The firm calculates that after adjusting for $5 million in one-time charges, adjusted EPS was $1.37, topping the consensus of $1.22. Earnings were up 50 bps year-over-year.
KeyBanc believes that the level of confusion surrounding quarter and the quarterly miss will cause shares to fall, but encourages investors to take advantage of the opportunity and buy shares of ESL. The firm feels confident that management will be able to reach its 15 percent operating margin target.
An analyst at KeyBanc comments, "Aftermarket spares and volumes have begun to moderate as management had expected, but we believe that ramping OE volumes in both the commercial and military markets coupled with Souriau-related synergies will effectively act as an offset."
The firm is lowering its 2011 and 2012 EPS estimates from $5.12 and $6.01 to $4.94 and $5.78.
For more ratings news on Esterline Tech click here and for the rating history of Esterline Tech click here.
Shares of Esterline Tech closed at $73.83 yesterday.
The company released its third quarter results below expectations, but the firm states that it was a number of moving parts and one-time items that negatively impacted the quarter. As a result, KeyBanc notes that investors may now have uncertainty regarding the company's core business although it was actually ahead of expectations.
The firm calculates that after adjusting for $5 million in one-time charges, adjusted EPS was $1.37, topping the consensus of $1.22. Earnings were up 50 bps year-over-year.
KeyBanc believes that the level of confusion surrounding quarter and the quarterly miss will cause shares to fall, but encourages investors to take advantage of the opportunity and buy shares of ESL. The firm feels confident that management will be able to reach its 15 percent operating margin target.
An analyst at KeyBanc comments, "Aftermarket spares and volumes have begun to moderate as management had expected, but we believe that ramping OE volumes in both the commercial and military markets coupled with Souriau-related synergies will effectively act as an offset."
The firm is lowering its 2011 and 2012 EPS estimates from $5.12 and $6.01 to $4.94 and $5.78.
For more ratings news on Esterline Tech click here and for the rating history of Esterline Tech click here.
Shares of Esterline Tech closed at $73.83 yesterday.
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