Market Overview

Triumph Group's Valuation Is 'Too Attractive To Ignore'


In a report published Tuesday, Credit Suisse analyst Robert Spingarn reiterated an Outperform rating on Triumph Group Inc (NYSE: TGI), but lowered the price target from $89.00 to $79.00.

In the report, Credit Suisse noted, "With this note, Rob Spingarn assumes lead coverage of TGI. We reiterate the firm's prior OP rating as the negative surprises appear largely over and, at a minimum, better understood, and given that the current valuation yields a favorable risk/reward outlook, especially in the context of our updated FY'15-17E forecast of $5.68/$6.02/$6.60 from $5.84/$6.82/$7.55."

The report continued, "We acknowledge continued concerns around 1) a suboptimal portfolio in Aerostructures; 2) remaining execution risk in Aerostructures; and 3) incremental exposure from the Gulfstream deal, but we think these issues are now priced in. With shares trading at just <10.0x our FY'16E and an appealing 7.7% FCF yield (vs. peers at ~4%), we feel the valuation is too attractive to ignore, especially with the momentum in the more highly regarded Systems business where the top 3 programs are growing. Our lower TP of $79 reflects our reduced forecast and embeds a peer discount for Aerostructures risk."

Triumph Group closed on Friday at $61.33.

Latest Ratings for TGI

Aug 2020JP MorganDowngradesNeutralUnderweight
Jul 2020SunTrust Robinson HumphreyDowngradesHoldSell
May 2020Canaccord GenuityMaintainsHold

View More Analyst Ratings for TGI
View the Latest Analyst Ratings


Related Articles (TGI)

View Comments and Join the Discussion!

Posted-In: Credit Suisse Robert SpingarnAnalyst Color Price Target Analyst Ratings

Latest Ratings

INTCJP MorganMaintains70.0
STMCanaccord GenuityMaintains47.0
ELDeutsche BankMaintains248.0
UAADeutsche BankMaintains13.0
INTCDeutsche BankMaintains55.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at