UPDATE: Citigroup Reiterates Buy Rating, Raises PT on Precision Castparts Corp.
In a report published Wednesday, Citigroup reiterated its Buy rating on Precision Castparts Corp. (NYSE: PCP), and raised its price target from $193.00 to $238.00.
Citigroup noted, “We're positive on PCP for 3 reasons. First, the company is exposed to positive cyclical dynamics, particularly production rate increases by commercial aerospace OEMs. Second, the company should benefit from positive secular trends in energy markets, especially in emerging economies including China, India, and Mid East. Third, we expect the company to generate higher long-term margins via accretive acquisitions and robust incremental margins as capacity utilization improves. Combined, we believe this can drive ~14% annual revenue growth between FY12 and FY15E, and 170 bps segment margin expansion through FY15E.”
Precision Castparts Corp. closed on Tuesday at $186.77.
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