UPDATE: Citigroup Reiterates Buy Rating, Raises PT on Wesco Aircraft Holdings

In a report published Wednesday, Citigroup reiterated its Buy rating on Wesco Aircraft Holdings WAIR, and slightly raised its price target from $17.00 to $18.00. Citigroup noted, “WAIR offers revenue & earnings visibility due to announced production rate increases, although this likely costs margin as the company shifts contract structures. We expect cross-selling & adjacent mkts to supplement core growth. This includes traction in the MRO market and crossselling with electronic products. Also, there is an opportunity for consolidation given a still fragmented market with WAIR and its chief competitor comprising 35% of the C-class aerospace distribution market. We could also see near-term EPS upside due to higher than expected ad hoc sales as increasing build rates stretch out the supply chain.” Wesco Aircraft Holdings closed on Tuesday at $13.43.