UPDATE: Credit Suisse Reiterates Outperform Rating, Raises PT on Triumph Group
In a report published Friday, Credit Suisse reiterated its Outperform rating on Triumph Group (NYSE: TGI), and slightly raised its price target from $78.00 to $79.00.
Credit Suisse noted, “Our FY'13 and FY'14 estimates rise to $5.88 and $6.45 from $5.85 and $6.40, respectively. The increase is driven by our improved confidence around margins and we believe consensus (and guidance) will rise through FY'13. We raise our FY'15 EPS estimate to $7.45 (from $7.38). The beat and raise trend at TGI has been driven by better than expected margin performance in Aerostructures, where margins reached 17.1% ex cum catch-ups in FQ1. Mgmt believes the FQ1 level of 17% is not only sustainable, but thinks there are "multiple hundred basis points to go" in margin expansion driven by synergy realization, execution, and volume leverage. We think one reason shares have lagged of late is that investors believe the margin improvement story is long in the tooth, where we disagree (as does management).”
Triumph Group closed on Thursday at $59.60.
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