Oppenheimer Reiterates Outperform On Gencorp Following FY3Q14 Resutls


In a research report published today, Oppenheimer analyst Ian Zaffino reiterated an Outperform rating on Gencorp (NYSE:GY) with a $20 price target, following the company’s third quarter results.

Zaffino noted, “Helped by strength in THAADs, Atlas and RL-10, partially offset by the ongoing transition of a SM program to production and Antares accounting, GenCorp reported revenues of $420M. This was lower than our $461M, owing to lumpiness, and should recover as evidenced by the increase in backlog to $3.0B, up from $2.5B in FY4Q13. Similarly, EBITDA was $38M vs. our $61M, partially due to a $12M impact from the previously announced Antares failure. Impressively, free cash flow was $43M, or $0.59/share. Management was very bullish on commercial space activity. We reduce our 2014E EBITDAP/EPS to $188M/-$0.57 (from $211M/-$0.32). Maintain 2015E EBITDAP/EPS.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Ian Zaffino has a total average return of 2.9% and a 42.9% success rate. Zaffino has a 44.4% average return when recommending GY, and is ranked #1236 out of 3340 analysts.

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