UPDATE: Bank of America Downgrades Wesco Aircraft Holdings to Underperform on Fundamentals, Valuation
Bank of America reduced its rating on Wesco Aircraft Holdings (NYSE: WAIR) from Buy to Underperform and reduced its price objective from $18 to $13.
Bank of America commented, "In our view the slower than anticipated cycle for WAIR's segment of the supply chain, combined with pricing pressure in ad hoc sales, and modest growth in lead times has led to disappointing results to date. While we commend the company's efforts to increase market share, expand internationally and focus on new business opportunities, we believe the fundamental distribution model may be at risk. In our view, the PCP/Boeing deal, whereby BA sources directly from PCP, could mark just the beginning of a fundamental industry change."
Wesco Aircraft Holdings closed at $13.29 on Friday.
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