UPDATE: Imperial Capital Re-Initiates Ducommun at Outperform on Inflection Point

Imperial Capital re-initiated coverage on Ducommun DCO with an Outperform rating and an $18 price target. Imperial Capital commented, "After a poor 2011 for DCO stock (down 40%), we believe there is further upside in 2012 and into 2013 as the company delivers margin upside and continues to de-lever since its LaBarge acquisition, completed on June 28, 2011. With the stock up 12% in 2012, as compared to the A&D index up just 8%, we believe patient investors will see further outperformance into 2013 as margins and execution improve and debt reduction continues. Aside from steady improvement in the core business, catalysts include margin upside in the Aerostructures segment, debt reduction, and better end market growth." Ducommun closed at $16.15 on Tuesday.