KeyBanc Starts Precision Castparts (PCP) at Hold, Cautious Near-Term
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Price: $234.95 --0%
Rating Summary:
4 Buy, 12 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 15 | Down: 12 | New: 12
Rating Summary:
4 Buy, 12 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 15 | Down: 12 | New: 12
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KeyBanc initiates coverage on Precision Castparts (NYSE: PCP) with a Hold.
The analyst comments, "Anchored by one of the more differentiated operating models in the sector, we anticipate that over the longer term the combination of favorable secular end market dynamics and accretive acquisitions complemented by solid management execution will continue to enable PCP to gain market share and sustain industry leading returns. However, we are presently cautious on the name in the near term for several reasons: 1) with corporate operating margins at peak levels we believe future margin expansion (which has been a key driver of the stock price in prior periods) will be limited; 2) PCP's business is becoming more capital intensive, which ultimately may threaten returns as the Company becomes more vertically integrated; 3) elevated global growth concerns likely pose a risk to PCP's general industrial and aerospace aftermarket revenues, which are roughly 23% of total revenues."
For an analyst ratings summary and ratings history on Precision Castparts click here. For more ratings news on Precision Castparts click here.
Shares of Precision Castparts closed at $163.08 yesterday.
The analyst comments, "Anchored by one of the more differentiated operating models in the sector, we anticipate that over the longer term the combination of favorable secular end market dynamics and accretive acquisitions complemented by solid management execution will continue to enable PCP to gain market share and sustain industry leading returns. However, we are presently cautious on the name in the near term for several reasons: 1) with corporate operating margins at peak levels we believe future margin expansion (which has been a key driver of the stock price in prior periods) will be limited; 2) PCP's business is becoming more capital intensive, which ultimately may threaten returns as the Company becomes more vertically integrated; 3) elevated global growth concerns likely pose a risk to PCP's general industrial and aerospace aftermarket revenues, which are roughly 23% of total revenues."
For an analyst ratings summary and ratings history on Precision Castparts click here. For more ratings news on Precision Castparts click here.
Shares of Precision Castparts closed at $163.08 yesterday.
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