UPDATE: Bank of America Downgrades Esterline Technologies on Model Revisit Following 3Q13 Results

In a report published Friday, Bank of America analyst Ronald J. Epstein downgraded the rating on

from Neutral to Underperform, but raised the price target from $76.00 to $77.00. In the report, Bank of America noted, “Based on 3Q13 results we are revisiting our model. As outlined in the table on page 3, we are updating our model post 3Q13 to account for the Racal goodwill impairment charge of $3.5mn ($0.11/share) and the $10mn charge related to compliance errors ($0.31/share) as well as slower defense sales going forward (vs. our previous expectation). While we are leaving our FY13 estimate excluding these charges unchanged, our GAAP estimate is $0.42 lower at $4.88 vs. $5.30 previously.” Esterline Technologies Corporation closed on Thursday at $81.11.