FBR Capital Remains Bullish on Ducommun (DCO) After Traveling with Management

FBR Capital reiterates an Outperform rating and $34.00 price target on Ducommun Incorporated (NYSE: DCO) after traveling with management. Analyst Christopher Horn says that he take advantage of the recent weakness in share price, and he believes tailwinds from its commercial aerospace exposure should offset some of the defense business challenges.

Horn commented, "We recently traveled with Ducommun management and continue to believe that our Outperform thesis on the stock remains intact. We would take advantage of the recent weakness in share price and be buyers of the name. We believe that tailwinds from its commercial aerospace exposure should more than offset some of the challenges within its defense business. In addition, the company recently refinanced its debt profile, which we think will be an additional tailwind to both earnings and cash flow, most specifically in 2016. We continue to believe that DCO is undervalued and that 2H15 and 2016 will be a transition period for the company where we could see meaningful revenue and core margin expansion, which we think should ultimately be reflected in the stock price. We reiterate our Outperform rating and $34 price target."

For an analyst ratings summary and ratings history on Ducommun Incorporated click here. For more ratings news on Ducommun Incorporated click here.

Shares of Ducommun Incorporated closed at $23.73 yesterday.

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