UPDATE: Imperial Capital Downgrades GenCorp to In-Line

Imperial Capital has published a research report on GenCorp

and has downgraded the company from Outperform to In-Line based on valuation. In the report, Imperial Capital writes, "We are downgrading our rating on GY's stock to In-Line from Outperform and establishing a one year price target of $6.00 (consistent with our previous valuation range of $5.25-6.25 per share). While we like the long-term prospects for earnings growth, top-line defense spending contraction, uncertainty about a potential FY13 pension funding requirement limits potential upside from current levels, in our view. We believe potential catalysts for equity value appreciation could come from additional deleveraging, new contract awards, and/or additional clarity on the potential FY13 pension funding requirement. We do not rate the company's debt securities." Imperial Capital has also established a $6 price target on GenCorp, which is currently trading up $0.02 from yesterday's $5.70 closing price.