Jefferies maintained a Buy rating on Triumph Group (NYSE: TGI), and cut the price target to $54.00 (from $59.00), following the company's earnings report. FY16 revenue is expected to be ~$3.9BB. Jefferies forecasts revenues to be $3.81BB, down 2% y-o-y with acquisitions contributing 8-points. The decrease is driven by a 16% organic decline in Aerostructures. TGI is assessing the impact of the announced 747-8 production cut to 0.5 aircraft/month. It appears the revision will result in either moving the work back to BA's Macon facility earlier than the planned 2018 timeframe.

Analyst Sheila Kahyaoglu commented, "It appears the new mgmt. team understands the challenges for the organization. Mr. Crowley will focus on reducing his cost base and driving improved performance thereby enhancing the attractiveness of TGI as a key supplier. Cash generation is also a key focus of mgmt. as evidenced by the compensation structure. Management revised FY16 EPS to be ~$5.53. Our FY16 and FY17 EPS estimates are $5.45 and $5.70, respectively."

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Shares of Triumph Group closed at $26.82 yesterday.