UPDATE: Bank of America Raises PT on Wesco Aircraft to Reflect Expanding Multiples

In a report published Wednesday, Bank of America analyst Ronald J. Epstein reiterated a Neutral rating on

, and raised the price target from $17.50 to $21.00. In the report, Bank of America noted, “We are now applying a 16x CY14E PE multiple, based on a weighted average mix of defense and commercial aerospace. We believe WAIR should trade at a slight premium to pure defense names and pure commercial aerospace names for the following reasons: 1) outsourcing of distribution is still just gaining traction in the A&D world but we believe offers significant potential upside to the industry; 2) WAIR should benefit as the commercial aerospace cycle expands and ad hoc sales as a percentage of mix increase; 3) WAIR is focused on expanding its international reach as well as its mix of sales (i.e OE vs Aftermarket).” Wesco Aircraft Holdings closed on Tuesday at $18.60.