JPMorgan Downgrades Triumph Group (TGI) to Underweight

JPMorgan analyst Seth Seifman downgraded Triumph Group (NYSE: TGI) from Neutral to Underweight with a price target of $12.00 (from $15.00).

The analyst comments: "Triumph has faced multiple challenges resetting the company over the past decade and management has accomplished a great deal. Nevertheless, cash flow improvement has fallen consistently short of expectations and June quarter results seemed were setting up for FY25 to continue this pattern. All of this was before the Boeing strike and TGI has significant exposure here. 737 OEM sales were ~10% of TGI's total sales in the June quarter and overall sales to Boeing represented 23% of total sales, including 18% in Systems & Support (S&S) and 65% in Interiors. Some of the S&S content is on military programs but there is also content on 777 and 767 and we would expect Boeing to be taking a more aggressive approach to inventory management in general. We do not know what instructions Boeing is giving to Triumph specifically but if they are similar to those going out to the broader supply chain, then Boeing sales should be coming down significantly starting in the Dec quarter and the pace at which they ramp back up post strike is TBD."

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 $15.00 yesterday.

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