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UPDATE: Morgan Stanley Reiterates On B/E Aerospace Following Guidance Increase

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In a report published Wednesday, Morgan Stanley analyst John D. Godyn reiterated an Overweight rating on B/E Aerospace (NASDAQ: BEAV), but removed the $105.00 price target.

In the report, Morgan Stanley noted, “Since 'strategic alternatives' speculation began many have argued that they fail to see the merits of spinning off the 'Services' business given that comparable companies trade at discounts to BEAV.

"We've argued that (A) the market meaningfully under-appreciates BEAV's growth profile and (B) the value of a spinoff is that it raises the probability of a future deal with the value creation coming from deal premium rather than SOP financial engineering - both of which we feel were supported by today's disclosures. Surprisingly - since BEAV postponed its May 5th investor meeting and began exploring strategic alternatives, the stock is up only 5.8% as of Tues. vs. the DJ A&D index's 4.2% increase despite BEAV's beta to the industry as well as material, EPS accretive announcements during this time.”

B/E Aerospace closed on Tuesday at $94.15.

Latest Ratings for BEAV

DateFirmActionFromTo
Nov 2016Deutsche BankDowngradesBuyHold
Oct 2016Vertical ResearchInitiates Coverage OnHold
Oct 2016Wolfe ResearchDowngradesOutperformPeer Perform

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Posted-In: John D. Godyn Morgan StanleyAnalyst Color Price Target Analyst Ratings

 

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