UPDATE: D.A. Davidson & Co. Reiterates on Precision Castparts Corp. Following Q2'14 EPS Report
In a report published Friday, D.A. Davidson & Co. analyst JB Groh reiterated a Buy rating on Precision Castparts Corp. (NYSE: PCP), and raised the price target from $275.00 to $300.00.
In the report, D.A. Davidson & Co. noted, “PCP reported Q2'14 EPS of $2.90, above our estimate of $2.70 and the Street mean of $2.83. Total revenues increased 22.4% to $2.4 billion, essentially in line our estimate. Revenues expanded ~6% organically after excluding the impact of contractual pass-through pricing and other metal/revert pricing. Investment Cast Products revenue fell ~1% to $608 million (slightly below our $615 million) as strong commercial aerospace sales (+9% year-over-year) were offset by a double-digit decline in business jet and military markets (especially military spares). IGT OEM and spares sales were up 1% year-over-year in the quarter. Engine destocking continued at major engine OEMs during the quarter and the programs should begin accelerating again in PCP's FQ4 (Dec).”
Precision Castparts Corp. closed on Thursday at $256.43.
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