Wells Fargo Starts Esterline Tech (ESL) at Market Perform; 15% EPS CAGR In Aerospace Upturn, But Near-Term Issues
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Price: $122.49 --0%
Rating Summary:
1 Buy, 10 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 9 | New: 14
Rating Summary:
1 Buy, 10 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 9 | New: 14
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Wells Fargo initiates coverage on Esterline Tech (NYSE: ESL) with a Market Perform. PT range $57-$60.
Wells analyst says, "We do not believe the stock reflects 15% EPS CAGR over the commercial aerospace upturn that should lead to EPS of $7 by 2014, from our current $4.56 FY2011 and $5.60 FY2012 EPS estimates. Despite significant underperformance since its FQ2 earnings report, we are concerned about FY2011 and FY2012 estimates and if the Street has properly reflected the purchase accounting adjustments from Souriau. Once recognized, we believe that Esterline will be a strong beneficiary from increased OEM aircraft production, new aircraft programs (i.e., 787 & A350) as well as several military and international programs that can move higher. We believe that as ESL executes its growth strategy, expands margins and provides increased confidence in its outlook that its historical valuation discount should begin to close."
For an analyst ratings summary and ratings history on Esterline Tech click here. For more ratings news on Esterline Tech click here.
Shares of Esterline Tech closed at $53.43 yesterday.
Wells analyst says, "We do not believe the stock reflects 15% EPS CAGR over the commercial aerospace upturn that should lead to EPS of $7 by 2014, from our current $4.56 FY2011 and $5.60 FY2012 EPS estimates. Despite significant underperformance since its FQ2 earnings report, we are concerned about FY2011 and FY2012 estimates and if the Street has properly reflected the purchase accounting adjustments from Souriau. Once recognized, we believe that Esterline will be a strong beneficiary from increased OEM aircraft production, new aircraft programs (i.e., 787 & A350) as well as several military and international programs that can move higher. We believe that as ESL executes its growth strategy, expands margins and provides increased confidence in its outlook that its historical valuation discount should begin to close."
For an analyst ratings summary and ratings history on Esterline Tech click here. For more ratings news on Esterline Tech click here.
Shares of Esterline Tech closed at $53.43 yesterday.
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