Ducommun Shares Soar on Upgrade

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Two weeks after reporting double-digit increases in profits and sales, shares in Ducommun Inc. got a 12 percent boost Monday after the 158-year old company was upgraded.


BB & T; Capital Markets analyst Michael Lewis upgraded the stock from a “Hold” to a “Buy.”


“Ducommun’s fundamental outlook has not worsened, but rather improved over the past few months. However, the valuation has contracted significantly,” Lewis said in a research report. “This has created what we consider to be an excellent opportunity to buy a solid company at depressed levels.”


Lewis also cited the continued strong pace of the commercial aerospace industry, adding that its defense-side work it also going strong.


Lewis said that the closure of Boeing’s Long Beach-based C-17 cargo jet factory is still “too far away to discount shares now.” The C-17 is one of Ducommun’s largest single accounts.


The upgrade also came two weeks after the Carson-based aerospace company reported a 44 percent jump in profit spurred by strong commercial sales and a broadening customer base.


Shares in Ducommun gained $3.07, or 12 percent, to $28.01 in afternoon trading Monday on the New York Stock Exchange. Shares have gained more than 70 percent this year.

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