UPDATE: Bank of America Upgrades Precision Castparts to Buy
Bank of America raised its rating on Precision Castparts (NYSE: PCP) from Neutral to Buy and increased its price objective from $194 to $200.
Bank of America said, "From current stock levels we believe there is almost 20% potential upside to our updated PO. We are therefore upgrading our rating from Neutral to Buy. Fundamentally, we believe we are at a turning point for PCP from both an acquisition integration perspective and with regard to the 787 ramp. 787 dollar content per aircraft is now ~$8mn on the GE variant and ~$7.5mn on the Rolls Royce variant. As this program ramps we should see meaningful drop through at PCP. We believe this should result in solid incremental margins for the company. Additionally, with the headwinds associated with Forged Products now behind the company we believe PCP is on a path to growth."
Precision Castparts closed at $170.19 on Friday.
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