Imperial Capital Sees Potential for Margin Expansion at Triumph Group (TGI)
Imperial Capital maintained an Outperform rating on Triumph Group (NYSE: TGI) and raised its price target to $80.00 (from $77.00). Triumph Group is a Tier 1-2 aerospace supplier with capabilities in design and engineering.
"Triumph Group’s strong 2Q13 results highlight continued opportunity for margin expansion and improved execution even with increased pricing pressure and potentially slower volume growth as the commercial cycle rate increases slow and defense spending see further reductions," said analyst Ken Herbert.
"The company continues to highlight significant upside to margins as it hits the $50mn annual synergy run rate in 12 months, and continues with a strong focus on execution. We expect an announcement on the Jefferson Street facility in Dallas before the end of 2012, which can further illustrate the synergy upside potential, in our view," said Herbert.
He raised FY 2013 and 2014 estimates to $6.14 and $6.45, respectively.
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 $66.96 yesterday, with a 52 week range of $52.53-$67.10.
"Triumph Group’s strong 2Q13 results highlight continued opportunity for margin expansion and improved execution even with increased pricing pressure and potentially slower volume growth as the commercial cycle rate increases slow and defense spending see further reductions," said analyst Ken Herbert.
"The company continues to highlight significant upside to margins as it hits the $50mn annual synergy run rate in 12 months, and continues with a strong focus on execution. We expect an announcement on the Jefferson Street facility in Dallas before the end of 2012, which can further illustrate the synergy upside potential, in our view," said Herbert.
He raised FY 2013 and 2014 estimates to $6.14 and $6.45, respectively.
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 $66.96 yesterday, with a 52 week range of $52.53-$67.10.