Credit Suisse Lowers Price Target On Moog As Macro Issues Weigh On Guidance

In a report published Monday, Credit Suisse analyst Robert Spingarn reiterated a Neutral rating on

(NYSE:

), but lowered the price target from $74.00 to $67.00. In the report, Credit Suisse noted, “Moog reported FQ1'15 EPS of $0.86 which missed consensus by $0.01 despite including ~$0.04 of tax help (from the reinstatement of the 2014 R&D tax credit), by our math. While management described FQ1 as "a slow start to the year," it classified it as being in-line with guidance, and actually slightly ahead of plan with respect to EPS. However, low oil prices and an associated reduction in exploration ($0.13) activity, slowdown in industrial markets ($0.13), higher tax and other macro effects ($0.07), and the FQ1 high yield bond issuance netted against share repurchases ($0.07) combined to drive a $0.30 (~9.4%) reduction to EPS guidance from $4.25 to $3.85, which excludes future share repurchases (MOOG notes in today's release that completion of the remaining 9M authority in FY'15 would be worth an incremental $0.10).” Moog closed on Friday at $70.30.