Esterline shares rise on strong results, outlook
Sept 4 (Reuters) - Shares of Esterline Technologies Corp (ESL.N) rose more than 18 percent Friday, a day after the aerospace and defense parts supplier posted quarterly profits above market expectations and raised its outlook for the year.
At least two brokerages raised their price targets on the company's stock following the results.
"We continue to believe FY09 will mark trough for ESL in this cycle given the organic growth we anticipate from an aftermarket recovery next year and full year contributions from ESL's two FQ1 acquisitions, Racal and NMC," Credit Suisse analyst Robert Spingarn said in a note to clients.
He raised his price target on the stock to $45 from $43.
The company's military business, which accounts for about 35 percent of its sales, should see growth in the mid-single digits, Jeffries analyst Howard Rubel said, and raised his target on the stock to $37 from $35.
However, this could be offset by further expected declines in business jet original equipment sales and general industrial-related volumes, he said.
Shares of the company were up $4.98 at $35.48 in morning trade on the New York Stock Exchange. They touched a high of $36.11 earlier in the session.
(Reporting by Amulya Nagaraj in Bangalore; Editing by Gopakumar Warrier)
((amulya.nagaraj@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: amulya.nagaraj.reuters.com@reuters.net)) Keywords: ESTERLINE/SHARES
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