A number of stock research firms have changed their ratings and price targets for Precision Castparts (NYSE: PCP) during the last seven days:

  • Precision Castparts had its “top pick” rating reaffirmed by analysts at RBC Capital. They now have a $192.00 price target on the stock.
  • Precision Castparts had its price target raised by analysts at Sterne Agee to $217.00. They wrote, “PCP has entered into a definitive agreement to acquire Titanium Metals Corporation (TIE, $11.57, NR) for $16.50 per share in cash. The transaction sets TIE’s total enterprise value at ~$2.9 billion. The acquisition is very strategic and will now allow PCP to become vertically integrated for titanium, which is the second most used material within PCP’s products behind nickel alloys. We expect significant synergies and we are raising our estimates and price target.”
  • Precision Castparts had its price target raised by analysts at Jefferies Group from $160.00 to $170.00. They now have a “hold” rating on the stock. They wrote, “After market close of Nov 9, PCP announced it had entered into an agreement to acquire Titanium Metals Corporation (TIE) for approximately $2.9BB. The deal appears to add $0.25 to $0.40 to PCP’s FY2014 (March) earnings. Before the benefits of the deal, we project PCP’s FY13 and FY14 EPS of $9.85 and $11.40.”
  • Precision Castparts had its price target raised by analysts at Credit Suisse from $199.00 to $212.00. They now have an “outperform” rating on the stock. They wrote, “After Friday’s (Nov 9) close, PCP announced an agreement to purchase publicly-traded TIE for ~$2.9B. Timet further integrates PCP upstream, adding titanium (Ti) sponge, melt & mill product capability. It is one of 3 domestic Ti mills (with ATI & RTI), and is a key supplier of Ti mill product to BA & engine OEMs. This is the largest deal in PCP history, among the most transformational, and we expect it to be very well-received given similarity to the CY06 acquisition of nickel-producer SMC which significantly exceeded accretion targets & established PCP as an excellent vertical integrator.”
  • Precision Castparts had its price target raised by analysts at Barclays Capital from $185.00 to $200.00. They now have an “overweight” rating on the stock.
  • Precision Castparts had its price target raised by analysts at JPMorgan Chase from $185.00 to $195.00. They now have an “overweight” rating on the stock. They wrote, “We rate PCP Overweight as we believe growth in the company’s key aerospace and power end markets, strong execution, and a proven ability to generate value through M&A should enable it to outperform through the cycle.”

Shares of Precision Castparts traded down 0.13% during mid-day trading on Friday, hitting $174.05. Precision Castparts has a one year low of $150.53 and a one year high of $182.40. The company has a market cap of $25.331 billion and a P/E ratio of 19.36.

Precision Castparts Corp. (PCC) is a manufacturer of metal components and products, provides investment castings, forgings and fasteners/fastener systems for critical aerospace and industrial gas turbine (IGT) applications.