Sterne Agee Initiates Coverage on Precision Castparts

A report from Sterne Agee initiates coverage on Precision Castparts (NYSE: PCP) with a Buy rating and $190 price target.

The report states, “PCP is well positioned to harvest the gains of the commercial aerospace upcycle, especially with a vertical integration cost structure that allows significant leverage its peers cannot match. While PCP is just beginning to get a tailwind from its aerospace volumes, the global recovery in industrial gas turbines (IGT) will also aid results given that Power Generation (which includes seamless pipe products) end market is ~21% of the company's total sales.”

PCP closed yesterday at $152.93.