UBS on U.S. Aerospace: Upgrades BE Aerospace (BEAV) to Buy, Downgrades Hexcel Corp (HXL)
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Price: $64.47 --0%
Rating Summary:
5 Buy, 13 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
5 Buy, 13 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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UBS on U.S. Aerospace: Gauging Aero Downside
UBS upgrades BE Aerospace (Nasdaq: BEAV) to Buy, downgrading Hexcel Corp (NYSE: HXL) to Sell
"We think aero earnings are poised to again hold up fairly well in a recession as manufacturers’ big backlogs make a production cut unlikely, the outlook for the aftermarket is much more favorable and bizjets haven’t recovered yet. We are adjusting EPS estimates and price targets lower to factor increased recession risk and worse defense outlook."
"Airbus and Boeing more vulnerable to production cut - We believe it will be more challenging for Airbus and Boeing (NYSE: BA) to again hold production rates and think planned increases beyond 2012 are at risk in recession. The strongest airlines already moved forward to take aircraft early last time and we don’t think export credit will be there to backstop deliveries like in 2009-10."
UBS upgrades BE Aerospace (Nasdaq: BEAV) to Buy, downgrading Hexcel Corp (NYSE: HXL) to Sell
"We think aero earnings are poised to again hold up fairly well in a recession as manufacturers’ big backlogs make a production cut unlikely, the outlook for the aftermarket is much more favorable and bizjets haven’t recovered yet. We are adjusting EPS estimates and price targets lower to factor increased recession risk and worse defense outlook."
"Airbus and Boeing more vulnerable to production cut - We believe it will be more challenging for Airbus and Boeing (NYSE: BA) to again hold production rates and think planned increases beyond 2012 are at risk in recession. The strongest airlines already moved forward to take aircraft early last time and we don’t think export credit will be there to backstop deliveries like in 2009-10."
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