UPDATE: Imperial Capital Downgrades Ducommun to In-Line Following Weak 1Q13 Results
In a report published Tuesday, Imperial Capital analyst Ken Herbert downgraded the rating on Ducommun (NYSE: DCO) from Outperform to In-Line, and lowered the price target from $28.00 to $25.00.
In the report, Herbert noted, “While much of our long-term positive thesis remains, we believe the non-A&D markets (natural resources, industrial, and medical) will be a headwind at least until 3Q-4Q13, further limiting top-line growth and putting additional pressure on the DLT margins. We recommend investors look to take profits, as the stock has been one of the best performing A&D stocks so far in 2013, and look for a more attractive entry point. DCO's 1Q13 results were weaker than expected, with non-A&D markets the primary headwind (down over 30%).”
Ducommun closed on Monday at $26.71.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.