US Q2 read-across
Update | Aerospace & Defence | 26/07/2011
With Meggitt’s interim results due on 2 August, we feel the prevailing winds are good with the read-across from US Q2 results from the likes of Goodrich and Honeywell hinting that traffic growth and revenues may well beat expectations. Factors such as the high margins derived from aftermarket revenues could contribute to full year upgrade potential. While we will be keeping a keen eye on military and energy revenues, and acknowledge the currency headwind, we see no reason why Meggitt continues to trade at such a substantial discount to its US peers.
DOWNLOAD FULL RESEARCHStock data
| Market cap. | £2826.3m |
| Last close | 364.600p |
| High / Low (52 weeks) | 587.5p / 347.3p |
| Stock market listing | LN, LN |
| Forecast net debt (£m) | 506 |
| Forecast gearing ratio (%) | N/A |
| Team | Industrials |
| Sector | Aerospace & Defence |
Price performance
| % | 1m | 3m | 12m |
|---|---|---|---|
| Actual | 0.9 | (23.7) | (29.8) |
| Relative * | 1.4 | (18.9) | (25) |
* % Relative to local index