Barclays Downgrades Triumph Group (TGI) to Underweight

Barclays analyst Kannan Venkateshwar downgraded Triumph Group (NYSE: TGI) from Equalweight to Underweight with a price target of $20.00 (from $23.00).

The analyst comments "While TGI's FCF outlook is improved off of $200M+ burn from not that long ago, we still don't foresee meaningful FCF over the next several years given lingering headwinds (advances/pension/transitioning red programs). Even assuming most of TGI's targeted margin improvement (~500bps), we forecast annual FCF well below $100M through FY22, with our forecast also well below consensus during this period. We primarily focus on the outlook for FCF for TGI given its high level of non-cash items included in EPS (contract amortization /pension income), without which we estimate EPS near $0.50, as well as its high leverage (~5x net debt/N12M EBITDAP or ~6.5x including pension deficit)."

For an analyst ratings summary and ratings history on Triumph Group click here. For more ratings news on Triumph Group click here.

Shares of Triumph Group closed at $22.65 yesterday.

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