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UPDATE: Credit Suisse Downgrades Esterline Technologies Following Disappointing FQ1 Report


In a report published Friday, Credit Suisse analyst Robert Spingarn downgraded the rating on Esterline Technologies Corporation (NYSE: ESL) from Outperform to Neutral, and lowered the price target from $131.00 to $117.00.

In the report, Credit Suisse noted, "With today's disappointing and messy FQ1 report (missed consensus by ~24% at $0.98 vs $1.29, including a variety of one-time items), Mgmt reminded us that FY15 is a transition year. We step to the sidelines with a Neutral rating and update our FY15-16 forecast to $5.44/$6.98 from $6.75/$8.00 (Note, FY15 is an 11-month year ending Sept). The reduction in our estimates lowers our TP to $117 from $131 (blend of peer P/E, historical P/E and EV/EBITDA). Last quarter, Mgmt characterized the missing 12th month (October) as worth 10.3% of the year due to seasonality, which implies FY15 of $6.06 from our $5.44 estimate. The resulting valuation of ~19.4x seems full to us. With this note, Rob Spingarn assumes primary coverage of ESL."

Esterline Technologies closed on Thursday at $117.73.

Latest Ratings for ESL

Dec 2018BarclaysUpgradesUnderweightEqual-Weight
Nov 2018Canaccord GenuityMaintainsHoldHold
Oct 2018Credit SuisseUpgradesUnderperformNeutral

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