Jefferies Raises PT on Precision Castparts (PCP) to $160, Maintains Hold (PCP)

Jefferies increased its price target on Precision Castparts

from $140 to $160. At the same time, Jefferies maintained its rating of Hold. In a research report published today, Jefferies pointed out that strong earnings growth is not enough to raise its rating on Precision because it believes Precision's shares have been fairly valued. In the report, Jefferies states, "PCP reported Q4:FY11 EPS of $1.87 vs. $1.66 a year-ago. Full-year earnings for FY11 (March) were $7.01 vs. $6.51 from continuing operations for FY10. We had estimated $7.10 for the year just ended. With aerospace, general industrial, and power volumes expected to increase, coupled with improved profitability from mix, we believe that PCP could grow EPS an average of 16% per year. Despite the impressive growth that lies ahead, we believe the stock is fairly valued at roughly one times the EPS growth rate. We maintain our HOLD rating, but are raising our price target to $160 (from$140)." In yesterday's trading, Precision added 0.79% to its value to close the day at $157.43.