Triumph Group Gets A Double Downgrade On Looming Production Uncertainty
Portfolio Pulse from Priya Nigam
Triumph Group Inc (NYSE:TGI) has been downgraded by BofA Securities due to uncertainties in aircraft production rates from Boeing and Airbus. The downgrade includes a rating change from Buy to Underperform and a price target reduction from $17 to $12. Concerns include production rates, free cash flow risks, and potential destocking.
September 24, 2024 | 3:54 pm
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NEUTRAL IMPACT
Boeing's uncertain production rates are impacting suppliers like Triumph Group, leading to downgrades and concerns over production cuts and destocking.
While Boeing is not directly downgraded, its production uncertainties are causing ripple effects on suppliers like Triumph Group. This could lead to potential supply chain issues, but the direct impact on Boeing's stock is less clear.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Airbus's uncertain production rates are contributing to supplier challenges, as seen with Triumph Group's downgrade due to potential production cuts.
Similar to Boeing, Airbus's production uncertainties are affecting suppliers like Triumph Group. While this is significant for suppliers, the direct impact on Airbus's stock is not as pronounced.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Triumph Group has been downgraded by BofA Securities from Buy to Underperform, with a price target cut from $17 to $12. Concerns include low production rates, free cash flow risks, and potential destocking due to Boeing and Airbus production uncertainties.
The downgrade by BofA Securities is significant, with a direct impact on Triumph Group's stock price. The concerns over production rates and free cash flow are critical, especially with the dependency on Boeing and Airbus. The market has already reacted with a 5.35% decline in TGI's share price.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100