PCC Stock Rating Lowered
PCC Stock Rating Lowered
Jason Sandefur
While being praised for its strong management, Precision Castparts Corp. saw its stock downgraded to “hold” from “buy” among at least one analyst, the Associated Press reports.
Analyst Howard Rubel of Jefferies & Co. Inc. lowered his rating due to an estimated 4% decline in air traffic during 2009.
Earnings are “likely to reflect challenges in the aerospace aftermarket” and revenue, too, is “expected to face tougher comparisons due to lower metal prices,” Rubel noted.
Portland, OR-based PCC is expected to generate $1.71 in earnings per share during the company’s third fiscal quarter.
PCC shares have risen 28% from market lows reached in late November. Rubel expects “tough comparisons” for the fourth quarter.
“The company is well managed and has demonstrated an ability to overcome a host of challenges in the past,” Rubel said. “However, we believe that some adverse impact on operating margins is likely with lower volumes.” Web: precast.com �2009 FastenerNews.com
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