Goldman Sachs Has Buy On Aeroflex Holding

Goldman Sachs is out with a research report on Aeroflex Holding Corp.

and it has a Buy rating and a $15 price target on shares. In a note to clients, Goldman writes, "We are adding Aeroflex to the Americas Conviction Buy list and raising our 12-month price target to $15 (64% upside). The stock is down 44% ytd (vs. the SOX -9%) due to recent project push-outs and concerns about the company's 30%-40% exposure to the defense market. However, we believe that Teradyne's proposed acquisition of LitePoint - a provider of test equipment for wireless devices such as smartphones – will refocus investors on this business at Aeroflex. Applying a LitePoint multiple to Aeroflex's test business (about half of total sales) would imply an equity value for test alone that is more than where the stock currently trades." Shares of ARX closed at $9.16 yesterday.