Industrials

CFRA Reiterates Buy Opinion On Mastercard Incorporated

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CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: Our 12-month target price of $465 (down $15) values shares at 31.1x our 2024 EPS estimate, discounted to MA’s five-year historical average of 37.6x to reflect the higher for longer rate environment. We raise our FY 2023 EPS estimate to $12.39 from $12.31 and increase FY 2024’s to $14.96 from $14.89. Q3 revenues were $6.53B (+14%, or +11% currency-neutral), in line with the consensus. Adjusted EPS was $3.39, which topped expectations by $0.18. On the positive side, gross dollar volume growth accelerated to 11% as weakness in the United States (+5%) was outweighed by strength in Latin America (+25%) and Europe (+22%). Additionally, cross-border volume (+21%) continued its momentum and sits a hefty 71% above pre-pandemic levels. However, spending trends have slowed in October and management indicated […]

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CFRA Retains Hold Rating On Shares Of Honeywell International Inc.

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CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We lower our 12-month target to $200 from $210, 19.1x our 2024 EPS estimate of $10.48 (lowered from $10.51; 2023 raised to $9.16 from $9.08), in line with HON’s pre-pandemic 2018-2019 forward P/E average to reflect higher-than-usual forecasting uncertainty amid rising interest rates and global macro issues. HON posted Q3 adj-EPS of $2.27 vs. $2.25 (+1% Y/Y), beating consensus by $0.04. We attribute the beat to better-than-anticipated margin execution (operating margin +140 bps Y/Y), on positive impacts from productivity actions within Honeywell Building Tech. The top line for Q3 expanded by 3% Y/Y (+2% organically), reflecting robust sales growth in Aerospace (+18% organic; 38% of total Q3 sales) with strength in both commercial aviation and defense activity. We expect Aerospace to remain the growth engine within HON’s

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CFRA Keeps Hold Opinion On Shares Of The Boeing Company

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CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: Our 12-month target of $190, cut $20, reflects a 39x multiple of projected 2024 EPS. The applied multiple is slightly below BA’s recent historical forward average of 42.5x, merited, in our view, by the ongoing retrenchment that must occur to move past quality control problems with the 737 family. We widen our expected per-share loss in 2023 by $1.94 to $5.23 and we cut our 2024 EPS estimate by $0.53 to $4.86. A Q3 operating loss per share of $3.26 vs. a loss per share of $6.18 is $0.65 wider than the consensus view. On a positive note, order flow is good, as BA racked up 400 net orders in Q3, but 2023 guidance on 737 deliveries was cut to a range of 375-400 in 2023 (prior

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CFRA Maintains Hold View On Shares Of General Dynamics Corporation

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CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We keep our 12-month target price of $255, 17.2x our 2024 EPS estimate (kept at $14.84; 2023 EPS lifted to $12.65 from $12.43), above GD’s five-year forward P/E average given a strong global defense environment. GD posted Q3 EPS of $3.04 vs. $3.26 (-7% Y/Y), $0.10 above consensus. We attribute the decline in EPS to a Y/Y contraction of operating margins (-100 bps) on supply chain pressures. Q3 revenue rose 6% over the prior year, driven by accelerated growth in Combat Systems (+24%; 21% of total Q3 sales), which more than offset a double-digit decline in GD’s aerospace business (-13%; 19% of sales). Softness in aero was led by fewer deliveries of Gulfstream jets due to supply chain constraints. We expect supply chain challenges to linger into

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CFRA Keeps Hold Opinion On Shares Of Automatic Data Processing, Inc.

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CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We cut our 12-month target price by $29 to $236 on a 26x multiple applied to our updated FY 2024 (Jun.) EPS estimate, slightly below ADP’s five-year historical forward average. We think a reduced multiple is reasonable in light of Q2 guidance for modest margin compression. We cut our FY 2024 EPS estimate by $0.05 to $9.09 but raise FY 2025’s by $0.13 to $10.06. ADP reported FQ1 (Jun.) EPS of $2.08 vs. $1.86, beating the consensus view by $0.06. Q1 revenues of $4.5 billion (+7% Y/Y) were essentially in line with consensus. ADP noted that its Professional Employer Organization (PEO) business saw margins narrow by 90 bps in Q1 (year-over-year). With higher selling expenses looming, as well as a deceleration in pays per control, management sees

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CFRA Reiterates Hold Rating On Shares Of 3m Company

/ / Industrials /

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We lower our 12-month target to $100 from $120, valuing shares at 11x our 2024 EPS (reduced to $9.13 from $9.25; 2023 EPS forecast lifted to $9.00 from $8.66). We use a lower multiple than MMM’s five-year forward P/E average of 16.3x to reflect litigation and regulatory risks stemming from safety and environmental issues with multiple 3M products. MMM shares are trading higher today following the company’s Q3 print; it posted an adjusted EPS of $2.68 vs. $2.60 (+3% Y/Y), which is above both consensus and the company’s original guidance ($2.25-$2.40). We attribute the beat to better-than-expected gains made on productivity, supply chain restructuring, cost savings, and pricing across each of MMM’s businesses. Softness in electronics, consumer retail, and China, as well as disposable respirator volumes, led

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CFRA Reiterates Buy Recommendation On Shares Of Rtx Corporation

/ / Industrials /

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We trim our 12-month target to $90 from $94, valuing shares at 15.0x our 2024 EPS estimate (lifted to $5.97 from $5.85; 2023 EPS adjusted to $5.01 from $5.05), a discount to RTX’s five-year forward P/E average of 18.8x. RTX posted adjusted Q3 EPS of $1.25 vs. $1.21 (+3% Y/Y), beating consensus by $0.03. Q3 organic revenues rose 12% Y/Y, driven by RTX’s commercial aviation business as air travel demand remains strong. Commercial aftermarket and originial equipment manufacturer (OEM) sales were both up by double digits (+25% and +26%, respectively). RTX took a sales charge of $5.4 billion in Q3, resulting in an expected $2.9 billion operating profit impact for the Pratt & Whittney powder metal recalls. RTX’s board approved a $10 billion accelerated share repurchase program

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CFRA Keeps Buy Recommendation On Fiserv, Inc.

/ / Industrials /

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: Our 12-month target of $140 (down $7), 16.6x our 2024 EPS estimate, is a slight discount to FI’s three-year forward average of 18.1x. We raise our 2023 EPS view by $0.04 to $7.49 and leave 2024’s unchanged at $8.45. FI posted Q3 adjusted revenues of $4.62B (+12% organically), edging consensus by $200M, driven by strong organic growth in Merchant Acceptance (+20%), specifically through Clover. Clover recorded 26% revenue growth and $272B annualized gross payment volume, which is up 15%. Payments and Networks and Financial Technology both saw 6% organic revenue growth. All three segments contributed to higher operating margin (+290 bps to 38.1%) delivering a Q3 adjusted EPS of $1.96 (+20% Y/Y), beating consensus by $0.03. Despite high macroeconomic uncertainty, we remain confident in FI’s ability to

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CFRA Keeps Hold Opinion On Shares Of General Electric Company

/ / Industrials /

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: Our 12-month target price remains $124, a 28.8x multiple applied to our revised 2024 EPS estimate. The applied multiple is in line with the average valuation in our aerospace universe coverage, as GE increasingly gets closer to a spin-off of GE Vernova, its Renewables and Power business, which would render GE as a pure-play aerospace firm. We raise our 2023 EPS estimate by $0.29 to $2.62 but trim 2024’s by $0.12 to $4.30. Q3 EPS of $0.82 vs. $0.35, beat the consensus view by $0.26. On the one hand, secular tailwinds for a revamped aerospace replacement cycle are strong and support demand for GE’s aircraft engines (including the LEAP engine). On the other hand, internal supply chain problems, plus quality control woes at both Boeing (BA 183

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