UPDATE: Imperial Capital Initiates B/E Aerospace at Outperform on Upside Potential

Imperial Capital initiated coverage on B/E Aerospace BEAV with an Outperform rating and a $56 price target. Imperial Capital commented, "BEAV is well positioned in the broader Aerospace & Defense (A&D) sector, and in our view justifies the premium at which the stock trades. First, the company has little defense exposure. We believe that defense sales represent just 5–10% of total company sales, which is a net positive as the outlook for defense spending will likely deteriorate as fiscal constraints and budget priorities put additional pressure on defense budgets over the next 2-4 years, in our view." B/E Aerospace closed at $43.91 on Tuesday.