Precision Castparts upgraded, supplier seen benefiting from increasing Boeing production
By APFriday, July 16, 2010
Precision Castparts upgraded over production boost
MINEAPOLIS — Precision Castparts Corp. will benefit from increasing production at Boeing Co. and market share gains, an analyst wrote on Friday.
THE OPINION: Precision Castparts, which makes metal components for the aerospace and power industries, should benefit even more during this recovery than during another recovery in its industry in 2007, analyst Robert Spingarn of Credit Suisse wrote. It makes parts for Boeing’s 737 and 777 aircraft, which are set for production rate increases, as well as the popular Airbus A320, he wrote. The company is also more likely than others in the sector to acquire other companies that will add to its bottom line.
THE STOCK: Precision Castparts shares fell $2.54, or 2.3 percent, to $107.24 in afternoon trading on Friday. The broader markets tumbled as well on weak consumer sentiment as well as lower corporate earnings. Spingarn upgraded it to “Outperform” from “Neutral” and raised his target share price to $150 from $129.
