UBS on Aerospace & Defense: Expectations From Aerospace MRO Conference in Dallas

UBS on Aerospace & Defense: Expectations From Aerospace MRO Conference in Dallas

Analyst, David E. Strauss, said, "Prefer aero aftermarket: Despite slowing capacity growth, we still favor aftermarket names as we think the aftermarket can come through strong on increased flying of out-of-warranty aircraft and the strongest spares pricing in several years (per our survey). We prefer TransDigm (NYSE: TDG) / Rockwell Collins (NYSE: COL) / BE Aerospace (Nasdaq: BEAV) with Spirit AeroSystems (NYSE: SPR) our preferred play on the commercial OE cycle."

Strauss also sees Textron (NYSE: TXT) and COL being the most levered to N. America business jet recovery. On the defense side, he sees General Dynamics (NYSE: GD) and Raytheon (NYSE: RTN) as being supported on from downside risk given the FY13 budget is in the rear view. Stauss also expected to get an update on Q1 orders and deliveries from Boeing (NYSE: BA) / Airbus / Embraer.

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