UPDATE: Credit Suisse Raises PT to 212 on Precision Castparts on Acquisition
Credit Suisse reiterated its Outperform rating on Precision Castparts (NYSE: PCP) and increased its price target from $199 to $212.
Credit Suisse noted, "After Friday's (Nov 9) close, PCP announced an agreement to purchase publicly-traded TIE for ~$2.9B. Timet further integrates PCP upstream, adding titanium (Ti) sponge, melt & mill product capability. It is one of 3 domestic Ti mills (with ATI & RTI), and is a key supplier of Ti mill product to BA & engine OEMs. This is the largest deal in PCP history, among the most transformational, and we expect it to be very well-received given similarity to the CY06 acquisition of nickel-producer SMC which significantly exceeded accretion targets & established PCP as an excellent vertical integrator."
Precision Castparts closed at $171.33 on Friday.
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