UPDATE: Imperial Capital Initiates Wesco Aircraft Holdings at In-Line on Near-Term Margin Pressure

Imperial Capital initiated coverage on Wesco Aircraft Holdings WAIR with an In-Line rating and a $15 price target. Imperial Capital said, "We believe that the key issues for WAIR now are its military exposure (44% of 2012 sales), slower growth in ad hoc parts sales relative to expectations, and an investor perception that much of the OE production upside is priced into the stock. We agree with the company's push into MRO markets, and its drive to move up the value chain from just parts sales to inventory management and logistics offerings, are positives and will potentially be positive catalysts. However, we believe acquisitions will be margin headwinds, at least in the near term, and we believe that the company will not see the real benefit of its recent and future acquisitions until the cycle likely turns in 2015-2016 and production rates flatten and risk declines." Wesco Aircraft Holdings closed at $13.21 on Tuesday.