UPDATE: Sterne Agee Raises Precision Castparts PT to $217
In a report published Monday, Sterne Agee maintained Precision Castparts Corporation (NYSE: PCP) with a Buy rating and raised price target from $190 to $217.
Sterne Agee noted, "PCP has entered into a definitive agreement to acquire Titanium Metals Corporation (TIE, $11.57, NR) for $16.50 per share in cash. The transaction sets TIE's total enterprise value at ~$2.9 billion. The acquisition is very strategic and will now allow PCP to become vertically integrated for titanium, which is the second most used material within PCP's products behind nickel alloys. We expect significant synergies and we are raising our estimates and price target."
Precision Castparts closed at $171.33 on Friday.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.