BE Aerospace (BEAV) Buy Rating Reiterated at Goldman Sachs

Goldman Sachs maintained a Buy rating on BE Aerospace (NASDAQ: BEAV) and lowered its price target to $102.00 (from $106.00). The change follows Q3 results. Analyst Noah Poponak thinks fundamentals are still strong.

"Consumables organic revenue was strong, while the Business Jet segment organic revenue declined on a very tough comp. CAS had its 15th consecutive double-digit organic growth quarter. Total adjusted segment margin beat our estimate. However, BEAV with this report also outlined the one-time items that would be associated with the planned spin-off of KLX – $366mn after-tax related to debt redemption, legal, accounting, advisory, tax and repositioning and separation costs" said Poponak.

"While the stock has been volatile since the original announcement of strategic alternatives, we still believe this is a particularly well positioned Aerospace supplier given its large aftermarket, exposure to strong airline profits, and the very unique SFE strategy. We believe multiple more years of double-digit organic revenue growth and near-20% EPS growth will drive value. We reiterate our Buy rating," he added.

For an analyst ratings summary and ratings history on BE Aerospace click here. For more ratings news on BE Aerospace click here.

Shares of BE Aerospace closed at $74.47 yesterday.

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