UPDATE: Deutsche Bank Cuts PT to $68 on TRW Automotive; Margin Degradation

Deutsche Bank lowers its price target from $69 to $68 on Buy-rated TRW Automotive

as Q1 EBITDA came in lower than expected on further degradation of margins. Deutsche Bank comments, "TRW's Q1 EPS came in at $1.62 vs. our $1.58 estimate. Approximately $0.02 of the upside vs. our estimate came from a lower than expected tax rate; equity income accounted for the remaining $0.02. EBIT was exactly on target with our $333 MM estimate, but EBITDA was quite a bit lower than we expected ($439 MM vs. our $456 MM est). We had been anticipating some degradation of incremental margins this year, but Q1 was weaker than anticipated. We are maintaining our Buy recommendation based on valuation." TRW closed at $45.99 on Tuesday.