S&P 500$4148.53-53.7-1.28%







Top Aerospace Movers Up

    Top Aerospace Movers Down

    • save$33.11-1.32-3.83%
    • hxl$51.65-2.16-4.01%
    • tgi$15.38-0.68-4.23%
    • rr£104.34-5.34-4.87%
    • lha€10.75-0.64-5.62%

    Top Metals/Materials Up

    • sr$750+40+5.63%
    • io$215.48+11.13+5.45%
    • cenx$16.82+0.69+4.28%
    • ggb$7.1+0.16+2.31%
    • fcx$43.52+0.78+1.82%

    Top Metals/Materials Down

    • ryi$16.46-0.4-2.37%
    • hayn$32.14-0.85-2.58%
    • lb$1544.45-62.7-3.9%
    • tmst$14.07-0.68-4.61%
    • ss$480.5-27.5-5.41%

    Companies Under Coverage:

    Coverage Universe
    Chris D. Olin

    The Boeing Company (BA): New Production Schedules Confirm Management Confidence In 737 Demand – Upgrading Shares To Outperform

    We are upgrading the shares of The Boeing Company (BA) to an OUTPERFORM recommendation today, with a twelve-month price target of $275/share, following the early identification of positive trading catalysts expected to develop in the coming months. Notably, our latest aerospace channel checks, which included discussions regarding the latest commercial aircraft production schedules released to all major suppliers, seems to be indicating an upward bias to Street expectations (focusing on CY22 and beyond). Continue reading

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    Coverage Universe
    Chris D. Olin

    The Boeing Company (BA): Dissecting A Fifth-Consecutive Quarterly Earnings Loss; Will Number Six Be The Last?

    A relatively upbeat aerospace market and corporate outlook provided by The Boeing Company (BA) management team, which was confirmed later in the week by Airbus (AIR), indicates the OEMs are nearing a point of stabilization. Assuming the current 737 MAX electrical situation does not become systemic problem, we believe the earnings shortfall risk may be starting to abate. We plan to take a closer look at the industry drivers and company modeling assumptions upon completion of our aero supply channel checks.

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    Coverage Universe
    Chris D. Olin

    Hexcel Corporation (HXL): One Step Closer To Stability, Assuming The Aircraft Production Rates Hold

    We came away from the latest Hexcel Corporation (HXL) quarterly earnings update and investor call somewhat intrigued by the latest market outlook, continuation of the cost reduction strategy, and uptick in confidence communicated by the management team. We would consider a rating change should the shares pullback and market intelligence confirm a reversal in upstream demand. Our hesitancy relates to the unfavorable macro environment and expected change in wide-body aircraft schedules (lower for longer). Continue reading

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    Coverage Universe
    Chris D. Olin

    Nucor Corporation (NUE): Gauging Upside/Downside Against Our Already Aggressive $10+ EPS Forecast For CY21

    After raising estimates for the current quarter and year to reflect the better-than-expected mid-quarter guidance issued by the management team last week, we examined some of the larger NUE portfolio drivers, looking to gauge the upside and downside risk as it relates to two major issues: (1) the sustainability of the Section 232 trade protections during a new period of US Presidential leadership; and (2) the upside bias associated with the release of a large infrastructure bill. Starting with a $10.00+ and $8.28/share earnings forecast for CY21 and CY22, respectively, already well above consensus, we calculated roughly $1.75-2.00 of potential earnings upside associated with surging demand for niche carbon steel products dedicated for large-volume public construction projects. Conversely, we assume there to be $1.40-1.50/share of earnings dilution risk should President Joe Biden rescind Section-232 trade protections. This implies a +30% risk/reward profile. Continue reading

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