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SPR

Spirit AeroSystems

$79.07

-0.53 (-0.67%)

, CW

Curtiss-Wright

$113.54

-0.06 (-0.05%)

08:46
10/18/17
10/18
08:46
10/18/17
08:46

Rising U.S. military spending supports Aerospace & Defense sector, says SunTrust

SunTrust analyst Michael Ciarmoli says that despite the outperformance of the aerospace & defense sector relative to broader market in Q3, strength will continue thanks to a U.S. government "budget flush", pick up in foreign military sales, and increases in Middle East airstrikes. Ciarmoli adds that he expects commercial aerospace aftermarket momentum to continue. The analyst is raising is price targets on KLX Inc (KLXI) to $59 from $56, Mercury Systems (MRCY) to $56 from $51, and Curtiss-Wright (CW) to $128 from $115, maintaining a Buy rating on those stocks. Ciarmoli also raises the price target on Spirit Aerosystems (SPR) to $83 from $78, but keeps a Hold rating given the cyclical risks in commercial aerospace and potential changes to aircraft production rates.

SPR

Spirit AeroSystems

$79.07

-0.53 (-0.67%)

CW

Curtiss-Wright

$113.54

-0.06 (-0.05%)

MRCY

Mercury Systems

$51.10

-0.61 (-1.18%)

KLXI

KLX Inc.

$54.10

-0.2 (-0.37%)

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SPR Spirit AeroSystems
$79.07

-0.53 (-0.67%)

10/13/17
DBAB
10/13/17
NO CHANGE
DBAB
Deutsche Bank likes three Defense names into Q3 results
Ahead of the Aerospace & Defense earnings season which begins on October 18, Deutsche Bank analyst Myles Walton says he likes Boeing (BA), Huntington Ingalls (HII) and Raytheon (RTN) into the reports. Helping support the quarter was continued strong air traffic demand, inflecting defense spending outlays, and the increasing geopolitical threat environment, Walton tells investors in a research previewing the earnings for the sector. The analyst increased some price targets in the space, including Huntington Ingalls to $260 from $240, Barnes Group (B) to $77 from $70, Hexcel (HXL) to $66 from $60 and Spirit AeroSystems (SPR) to $83 from $75.
10/09/17
RBCM
10/09/17
NO CHANGE
Target $209
RBCM
Outperform
Defense and Aerospace sector poised for strong Q3, says RBC Capital
RBC Capital analyst Matthew McConnell previewed the Q3 earnings season for the defense and commercial aviation industries, raising price targets across the sectors. In defense, McConnell likes the companies with focus on international markets, where demand has not yet been reflected in orders or backlog. Among his favorites, McConnell raises the price target on Raytheon (RTN) to $209 from $193, General Dynamics (GD) to $241 from $220, Northrop Grumman (NOC) to $324 from $294, Lockheed Martin (LMT) to $327 from $289, and Triumph (TGI) to $38 from $33. He also states that there may be room for some consolidation in defense given that budget up-cycle is only 2 years old, profiling Astronics (ATRO), Barnes (B), Esterline (ESL), Heico (HEI), and Textron (TXT) as some of the potential targets. In commercial aviation, McConnell sees Boeing (BA) upside driven by continued strong air traffic growth, mature sales campaigns, and expectations for a strong wide-body replacement cycle starting in the early 2020s, raising his price target on Boeing to $269 from $235.
09/28/17
ADAM
09/28/17
NO CHANGE
Target $86
ADAM
Buy
Spirit AeroSystems price target raised to $86 from $80 at Canaccord
Canaccord analyst Ken Herbert raised his price target on Spirit AeroSystems to $86 from $80 following its investor day presentation. The analyst cited the company's focus on revenue generation and execution as well as its aggressiveness on its cost structure. Herbert reiterated his Buy rating on Spirit AeroSystems shares.
09/28/17
JEFF
09/28/17
NO CHANGE
Target $90
JEFF
Buy
Spirit AeroSystems price target raised to $90 from $84 at Jefferies
Jefferies analyst Howard Rubel raised his price target for Spirit AeroSystems (SPR) to $90 saying executing its supply and pricing agreement with Boeing (BA) eliminates an uncertainty and creates a structure for sharing operational gains. Following the company's investor conference, the analyst believes opportunities in the defense, fabrication and commercial aircraft markets should drive Spirit's revenue growth at a mid-single digit rate. He keeps a Buy rating on the name.
CW Curtiss-Wright
$113.54

-0.06 (-0.05%)

06/05/17
RHCO
06/05/17
UPGRADE
RHCO
Buy
Curtiss-Wright upgraded to Buy from Hold at SunTrust
SunTrust analyst Michael Ciarmoli upgraded Curtiss-Wright to Buy and raised its price target to $112 from $103 saying recent share underperformance has created an attractive entry point. The analyst believes the Westinghouse bankruptcy has weighed on shares but believes the financial impact will be minimal and notes several major E&C companies are in the process of submitting bids to pick up construction of Westinghouse's domestic AP1000 reactors. Ciarmoli expects margin expansion to be driven by volume growth from strong general industrial revenue growth in Q1 and expects 200bps of operating margin expansion over the next two years.
09/18/17
STFL
09/18/17
INITIATION
Target $100
STFL
Hold
Curtiss-Wright initiated with a Hold at Stifel
Stifel analyst Nathan Jones initiated Curtiss-Wright with a Hold and a $100 price target due to premium valuation.
10/06/17
DBAB
10/06/17
NO CHANGE
Target $125
DBAB
Buy
Curtiss-Wright price target raised to $125 from $106 at Deutsche Bank
Deutsche Bank analyst Myles Walton raised his price target for Curtiss-Wright to $125 after spending time with management. The analyst says he's bullish heading into 2018 due to improving industrial trends and continued strength on the AP1000, in addition to inflecting defense and nuclear aftermarket spending. He reiterates a Buy rating on Curtiss-Wright.
02/17/17
WBLR
02/17/17
INITIATION
WBLR
Market Perform
Curtiss-Wright assumed with a Market Perform at William Blair
William Blair analyst Nicholas Heymann assumed coverage of Curtiss-Wright with a Market Perform rating.
MRCY Mercury Systems
$51.10

-0.61 (-1.18%)

03/30/17
BARD
03/30/17
NO CHANGE
Target $43
BARD
Outperform
Mercury Systems price target raised to $43 from $38 at Baird
Baird analyst Peter Arment sees Mercury Systems as poised to expand its addressable market and gain share as the Pentagon steps up pressure on defense OEMs to reduce costs. Saying that even his "conservative assumptions" point to significant upside, he raised his price target on Mercury shares to $43 from $38 and keeps an Outperform rating on the stock.
04/05/17
RHCO
04/05/17
NO CHANGE
RHCO
Defense stocks likely to be weak in short-term, says SunTrust
SunTrust analyst Michael Ciarmoli says that "ongoing discord" in Washington, including animus over the confirmation of Judge Gorsuch, will cause defense stocks to undergo "short-term selling pressure and multiple compression." The analyst says that the conflict between the parties and clashes over the budget could derail the Trump Administration's defense spending goals. Additionally, he says that a lack of funds could force Congress to cut the funds appropriated to some defense programs. Nevertheless, the analyst is upbeat on the sector over the longer tyerm ,citing the need to update aging equipment and elevated threat levels. He thinks that any short-term weakness should be viewed by longer term investors as a buying opportunity. The analyst keeps Buy ratings on Aerojet Rocketdyne (AJRD), BWX Technologies (BWXT), Kratos Defense (KTOS), Mercury Systems (MRCY), and Orbital ATK (OA),
05/12/17
RHCO
05/12/17
NO CHANGE
RHCO
Mercury Systems price target raised to $46 from $42 at SunTrust
After meeting with Mercury's management, SunTrust analyst Michael Ciarmoli calls the company "one of the more compelling organic growth stories in the defense sector." The analyst expects the company to grow at a high single digit to low double digit percentage rate, driven by " recent acquisitions, market share gains, and increased outsourcing opportunities." He keeps a Buy rating on the shares.
08/02/17
RHCO
08/02/17
NO CHANGE
RHCO
Mercury Systems should be bought on any weakness, says SunTrust
SunTrust analyst Michael Ciarmoil says that investors were concerned about Mercury's Q4 guidance, but he says that it's conservative. The analyst says that the company's results will be hurt by an increase in its R&D spending, but he is upbeat about its growth opportunity and says that it can make accretive deals. The analyst recommends buying the stock on any weakness.
KLXI KLX Inc.
$54.10

-0.2 (-0.37%)

09/14/17
RHCO
09/14/17
NO CHANGE
RHCO
Boeing production increase positive for suppliers, says SunTrust
SunTrust analyst Michael Ciarmoli says that Boeing's (BA) decision to increase its production to 14 planes per month in 2019, up from 12 currently, was "surprising" to many investors, including him, who expected the company to maintain or cut its current production level. He thinks that the decision increases the chances that the 2018 and 2019 estimates for airplane suppliers will rise. The analyst says that the following companies can benefit from Boeing's production increase: Astronics (ATRO), Barnes Group (B),Rockwell Collins (COL), KLX Inc. (KLXI), Spirit AeroSystems (SPR),Triumph Group (TGI), Wesco Aircraft (WAIR),and Woodward (WWD),
01/19/17
RHCO
01/19/17
INITIATION
RHCO
Buy
KLX Inc. initiated with a Buy at SunTrust
SunTrust analyst Michael Ciarmoli started coverage of KLX with a $53 price target and a Buy rating.

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