Rockwell Collins (COL) Stock Climbing Today After Canaccord Genuity Upgrade
NEW YORK (TheStreet) -- Rockwell Collins (COL) stock is up 1.23% to $92.76 in early morning trading Friday after Canaccord Genuity upgraded its rating to "buy" from "hold," and increased its price target to $108 from $90.
Rockwell Collins is engaged in design, production and support of communications and aviation electronics for commercial and military customers worldwide.
"We have increased confidence in the cash flow visibility and the potential for margin upside as the commercial cycle continues to improve," analysts said.
Canaccord believes that the stock will continue to improve as investors get to know the IMS segment and growth starts to accelerate, adding that they are not yet calling for upside to the incremental $10 million in annual synergies that the company has targeted.
However, Canaccord said that as the company delivers growth, the story will be better accepted, and potential acquisitions in this business will be better received.
"We believe that the better visibility on top-line growth, coupled with the improving free cash flow, will continue to justify a re-rating on shares, and the multiple will reflect the improved sentiment," analysts said.
Canaccord is increasing their 2015 and 2016 earnings estimates to $5.28 and $5.74 per share from $5.24 and $5.70 per share, respectively.
Separately, TheStreet Ratings team rates ROCKWELL COLLINS INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate ROCKWELL COLLINS INC (COL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in stock price during the past year, increase in net income, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
You can view the full analysis from the report here: COL Ratings Report
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