UPDATE: Bank of America Downgrades Curtiss-Wright Following Model Update

In a report published Thursday, Bank of America analyst Elizabeth Grenfell downgraded Curtiss-Wright CW from Buy to Neutral, but raised the price target from $42.00 to $46.00.

In the report, Bank of America noted, “After last week's 2Q13 results we are updating our model to incorporate higher margin expectations than previously. Specifically, we are increasing our Flow Control margin assumption to 9% from 8.9% and Surface Technologies to 16.9% from 16.5%. In our view there is likely upside risk to our Surface Technologies assumption. However, we are taking a conservative view for now as the company still has to integrate all of its recent acquisitions. In the out years we assume margins continue to improve. We left our sales assumptions unchanged. As a result of these changes we are increasing our 2013 EPS estimate to $2.85 from $2.80. This is on the high end of management's updated outlook of $2.75-$2.85. In the out years our estimates are unchanged.”

Curtiss-Wright closed on Wednesday at $43.31.