UPDATE: Stifel Nicolaus Upgrades Circor International to Buy on Growth Outlook
Stifel Nicolaus upgraded its rating on Circor International (NYSE: CIR) from Hold to Buy and announced a price target of $41 a share.
Stifel Nicolaus noted, "We are upgrading shares of CIRCOR to Buy for the following reasons 1) Multiple tailwinds to margins in 2013 including absence of low margin backlog, improving long cycle pricing, fixed cost absorption at new India plant, leverage on volume in Aerospace, 2) We see limited downside risk to oil prices in the near term and CIR shares historical correlation to oil imply a $40 current valuation, 3) Management had done a poor job of delivering on promises in the past. YTD execution has been very good, in our opinion, and CIRCOR's valuation warrants management being taken "out of the penalty box"
Circor International closed at $31.23 on Thursday.
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