UPDATE: Bank of America Merrill Lynch Initiates Coverage on Esterline Technologies with Neutral Rating, $66 PT

In a report published Friday, Bank of America Merrill Lynch initiated coverage on Esterline Technologies Corporation

with a Neutral rating and $66.00 price target. BofA Merrill Lynch noted, “We view ESL as a well diversified supplier, with approximately 40% of sales from Defense, 40% from commercial aerospace and 20% from industrial. However, the company's exposure to the defense end market has caused recent headwinds for the company. We expect these end market pressures will continue as the US defense budget faces increased scrutiny. Furthermore, we believe the company's exposure to aftermarket sales (30% of sales) will present further pressure on earnings.” Esterline Technologies Corporation closed on Thursday at $58.47.