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UPDATE: Canaccord Downgrades B/E Aerospace

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In a research note released Wednesday, Canaccord analyst Ken Herbert downgraded B/E Aerospace (NASDAQ: BEAV) to Hold from Buy and decreased the price target from $100 to $98.

The primary reason for the downgrade was due to the analyst not believing that a sale of the entire company would happen. The firm came to this conclusion after the company announced that it would be separating the company into two primary segments, manufacturing and distribution. The company plans to initiate this in the first quarter of 2015.

The analyst continued to state that even though the company raised its 2014 EPS estimates to $4.35, it still has reason to believe that the stock will face pressure as details of the spinoff emerge. Additionally, the analyst is maintaining his 2014 and 2015 EPS estimates of $4.46 and $5.13, respectively.

As for the price target, a valuation of above 100 requires high multiples, which the company does not possess at this time.

Shares of the company are down less than one percent on Wednesday and are up seven percent year-to-date.

Posted-In: Canaccord Ken HerbertAnalyst Color Downgrades Price Target Analyst Ratings


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