"We believe the sale or spin-off of Consumables Management is the most likely outcome of BEAV's review of strategic alternatives...current levels reflect a middle of the range valuation for CMS with modest upside potential to $105-$110 per share.," their note said.
We think sale of the entire company could yield upside to $120, we see this as less likely and as a result are downgrading BEAV," the note added.
The shares closed slightly higher yesterday.
TheStreet Ratings team rates B/E AEROSPACE INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate B/E AEROSPACE INC (BEAV) 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 revenue growth, impressive record of earnings per share growth, compelling growth in net income, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow."