Arconic's (ARNC) Lack Of Detail On Strategic Plan Drive PT Cut To $17 At Cowen

February 12, 2019 8:45 AM EST
Get Alerts ARNC Hot Sheet
Price: $36.92 --0%

Rating Summary:
    11 Buy, 4 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 13 | Down: 9 | New: 6
Trade Now! 
Join SI Premium – FREE

Get instant alerts when news breaks on your stocks. Claim your 1-week free trial to StreetInsider Premium here.

Cowen analyst, Gautam Khanna, reiterated his Market Perform rating on shares of Arconic (NYSE: ARNC) and cut his price target to $17 from $20 after the company reported mixed Q4 operating results with strong FCF but a weak operating margin. Perhaps more importantly, while management did outline a plan to separate EP&S from GRP, it omitted critical information that leave investors wanting detail.

The analyst stated "ARNC didn't quantify the cash separation costs (although, CEO Plant hopes it will cost less than the AA/ARNC separation), the targeted capital structures of each entity, including the allocations of pension, the FCF of each entity and ongoing capital needs of each, and ARNC offered no granularity on what will determine which segment is Spinco vs. Remainco, and relatedly, whether either entity can be spun/acquired without negative tax consequences".

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

Shares of Arconic closed at $17.42 yesterday.



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Analyst EPS Change, Analyst EPS View, Analyst PT Change

Related Entities

Cowen & Co