UPDATE: Deutsche Bank Downgrades Precision Castparts to Hold on Limited Upside
In a report published Friday, Deutsche Bank analyst Myles Walton downgraded the rating on Precision Castparts Corp. (NYSE: PCP) from Buy to Hold, but reiterated the $245.00 price target.
In the report, Deutsche Bank noted, “EPS of $2.88 in the Q was just behind our $2.89 and the Street's $2.90 as sales of $2.4B were under our $2.5B with about half of the delta explained by lower metal price/pass-through related sales. The margins in the quarter tracked about 80bps ahead of our estimates, which was helped by the lower (no-margin) metal pass-through revenue. We estimate free cash flow was over 100% in the quarter with free cash in the mid-$400M range. But organic growth (correcting for metal fluctuations) was about flat (for the 4th quarter) and looks it could remain weak through FY3Q. Downgrade to Hold on limited upside to Price Target.”
Precision Castparts Corp. closed on Thursday at $230.70.
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