Increased Price Target For BE Aerospace Inc

BE Aerospace, Inc

Price Target is being increased from $35 to $38 a share. On Oct 4th BEAV announced its intent to acquire TSI Group, Inc which bumped up the PT. In a research report Oppenheimer writes, "The purchase price is $310M in cash, or about 2x TSI Group's expected current year sales, 9.5x expected current year EBITDA. TSI annual revenue is expected to be ~$150-160M with EBITDA margins of ~20%, for EBITDA in excess of $30M. Close is expected in 4Q.While it is not our practice to include pending transactions in estimates, it appears the Street is largely doing this, given also the inclusion of interest on the recent debt issue and the likelihood the company will include both when guidance is provided during 3Q earnings. Thus we are also, to avoid confusion." BEAV is currently trading up on the day at $31.90