In a report published Friday, Deutsche Bank analyst Rod Lache downgraded TRW Automotive TRW from Buy to Hold and maintained a price target of $67.00.
In the report, Deutsche Bank noted, "We continue to see several items that could have positive implications for TRW's stock price. First, the possibility of a more favorable outcome to the European antitrust investigation than our current assumption of $400MM in fines (a $3 drag on our target price). Second, we continue to believe TRW has the potential to repurchase significantly more equity than the $835MM remaining under its current repurchase authorization. If TRW were to reach 1x leverage by the end of 2014 it would imply an additional $950MM (In addition to the $835MM) of potential share repurchases, even after assuming an antitrust settlement of ~$400M."
TRW Automotive closed on Thursday at $61.50.
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