UPDATE: Oppenheimer Initiates Coverage on GenCorp at Outperform on Impressive FCF Yield

Oppenheimer analyst Ian Zaffino initiated GenCorp

with an Outperform rating and a $20 price target this morning. In the report, Ian defended the rating saying "With an impressive 2014E 24% FCF yield ex-land, a highly valued land bank and a company-transforming acquisition about to close, we believe GenCorp is an interesting investment opportunity. The company has one of the more favorable growth profiles in the defense industry, given its focus on "highest priority" projects and its role as a mission-critical supplier of highly-reliable propulsion systems." Following the report, GenCorp shares were unchanged in pre-market trading.