TGI Upgraded to Outper

Thursday, June 12, 2014, Credit Suisse Upgraded

to Outperform from Neutral and raised the Target Price to $88 from $71, following yesterday's analyst day, where management boosted full year fiscal-2015 guidance and offered long-term target growth ranges for top and bottom line. Credit Suisse analyst Julie Yates noted, "We think the micro story at TGI has been largely de-risked (Red Oak complete, 747 on the mend) and the macro risk (production rates on 747, 777, A330) is longer-term and priced in at current levels. If mgmt. can achieve its L-T EPS growth targets of 15% (embeds acquisitions & buybacks), we think the stock offers a unique GARP opportunity in aerospace." Yates explains that the change from their previous Downgrade in September, came from EPS growth and FCF generation resume for the full fiscal year of 2015 after a challenging 2014. Yates thinks management is making a wise capital allocation decision with the firm's share buy back and strategic acquisitions and expects the capital allocation plan to continue; Yates also relayed excitement in Triumph's new energetic CFO. Triumph shares closed yesterday at 70.15, and should be monitored today due to the Upgrade.