UPDATE - Barclays Initiates Coverage on Wesco Aircraft (WAIR) with an Overweight; Premium Company, Discounted Price
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Price: $11.04 --0%
Rating Summary:
0 Buy, 13 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
0 Buy, 13 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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UPDATE - Barclays initiates coverage on Wesco Aircraft (NYSE: WAIR) with an Overweight. PT $18.00.
Barclays analyst says, "Wesco is an aerospace hardware distributor focused on OEM customers. We believe WAIR offers: 1) premium growth to both aero and distribution peers (64% organic over past five years, ~5% more than peers annually), 2) strong competitive positioning with best in class domain knowledge and visibility together with scale benefits (which enables smarter, cheaper purchasing that generates outsized returns, 3) high margins (mid 20s on EBITDA), and 4) a ~25% discount to peers on P/E."
"Investors, we believe, have fundamental misperceptions about Wesco's business resulting in undue worry about the sustainability of Wesco growth in challenging defense markets (50% of sales) as well as initiatives at Boeing (NYSE: BA) to establish alternative distribution sources for Boeing-unique fasteners (~6% of sales). Increased appreciation of how WAIR has grown by increasing the number of SKUs flowing through distribution channels, by increasing its market share within the distribution channel and by the increase in ad-hoc sales over aerospace cycles, should in our view not only mitigate concerns but also give confidence in solidly growing EPS forecasts."
To see more ratings changes on WAIR, Click Here
Barclays analyst says, "Wesco is an aerospace hardware distributor focused on OEM customers. We believe WAIR offers: 1) premium growth to both aero and distribution peers (64% organic over past five years, ~5% more than peers annually), 2) strong competitive positioning with best in class domain knowledge and visibility together with scale benefits (which enables smarter, cheaper purchasing that generates outsized returns, 3) high margins (mid 20s on EBITDA), and 4) a ~25% discount to peers on P/E."
"Investors, we believe, have fundamental misperceptions about Wesco's business resulting in undue worry about the sustainability of Wesco growth in challenging defense markets (50% of sales) as well as initiatives at Boeing (NYSE: BA) to establish alternative distribution sources for Boeing-unique fasteners (~6% of sales). Increased appreciation of how WAIR has grown by increasing the number of SKUs flowing through distribution channels, by increasing its market share within the distribution channel and by the increase in ad-hoc sales over aerospace cycles, should in our view not only mitigate concerns but also give confidence in solidly growing EPS forecasts."
To see more ratings changes on WAIR, Click Here
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