Triumph Group dips after BofA cuts rating on production uncertainty

Triumph

24/09/2024 15:11

** Aerospace firm Triumph Group's shares  TGI.N  fall 5.2%
to $12.85 in early market hours
    ** BofA downgrades rating to "underperform" from "buy",
lowers PT to $12 from $17  
    ** Says TGI's transformation efforts are being overshadowed
by its reliance on uncertain aircraft production rates by Boeing
 BA.N  and Airbus  AIR.PA  
    ** "Any further production cuts could lead to destocking,
which would compound existing free cash flow headwinds from the
V-22 (tiltrotor aircraft) program sunsetting, OEM deferrals,
inflation and supply-chain shortages." - BofA
    ** Three brokerages rate TGI "buy" or higher, five "hold"
and one "sell"; their median PT is $15 - LSEG compiled data
    ** Up to last close, stock had fallen 22.5% YTD

 (Reporting by Aatreyee Dasgupta)
 ((Aatreyee.Dasgupta@thomsonreuters.com))