|
|
|
ONLINE FEATURES
Book Reviews
BW Video
Columnists
Interactive Gallery
Newsletters
Past Covers
Philanthropy
Podcasts
Special Reports
BLOGS
Auto Beat
Bangalore Tigers
Blogspotting
Brand New Day
Byte of the Apple
Economics Unbound
Eye on Asia
Fine On Media
Green Biz
Hot Property
Investing Insights
Management IQ
NEXT: Innovation
NussbaumOnDesign
Tech Beat
Working Parents
TECHNOLOGY
J.D. Power Ratings
Product Reviews
Tech Stats
Wildstrom: Tech Maven
AUTOS
Home Page
Auto Reviews
Classic Cars
Car Care & Safety
Hybrids
INNOVATION
& DESIGN Home Page Architecture Brand Equity Auto Design Game Room SMALLBIZ Smart Answers Success Stories Today's Tip INVESTING Investing: Europe Annual Reports BW 50 S&P Picks & Pans Stock Screeners Free S&P Stock Report SCOREBOARDS Hot Growth 100 Mutual Funds Info Tech 100 S&P 500 B-SCHOOLS Undergrad Programs MBA Blogs MBA Profiles MBA Rankings Who's Hiring Grads |  |
NOVEMBER 20, 2006
A Goodrich Joyride  With airlines rebounding and plane orders, especially at Boeing (BA
), winging up, Goodrich (GR
) is airborne. A maker of jet-engine and other aircraft parts, such as airframe and electronic systems, "Goodrich has the strongest growth profile in aerospace," says Jeffrey Kleintop at PNC Wealth Management, which owns shares. Demand is driven by growth of fleets of planes with more than 100 seats. He says many observers thought last year's level of 1,000 jetliner orders couldn't be sustained, "but we have seen orders exceeding 1,000 so far in 2006." The surge will continue, he believes, as airlines upgrade with more fuel-efficient planes. And more airlines are emerging in Asia, where traffic is growing fast, says Kleintop. Richard Tortoriello of Standard & Poor's (MHP
) has raised Goodrich from a "hold" to a "buy" and upped his 2006 earnings forecast (excluding a $1.15 tax gain) by 15 cents, to $2.55 a share, and his 2007 estimate by 15 cents, to $3.05. "With fleets growing and air travel strong, we expect good demand for Goodrich's parts and its maintenance, repair, and overhaul services to continue for at least the next two years," says Tortoriello. Goodrich's stock has flown from 37 in mid-June to 44.72 on Nov. 8. PNC's Kleintop says one more factor will lift the stock: a possible buyout. The scuttlebutt, he says, is that rivals Honeywell International (HON
) and United Technologies (UTX
), as well as General Electric (GE
), which has a jet engine unit, are eyeballing Goodrich. He thinks the stock could hit 55 in a year, but in a deal, he figures it's worth 60. Honeywell, United Technologies, and GE declined comment.
Note: Unless otherwise noted, neither the sources cited in Inside Wall Street nor their firms hold positions in the stocks under discussion. Similarly, they have no investment banking or other financial relationships with them.  By Gene G. Marcial
BW MALL
SPONSORED LINKS
Get BusinessWeek directly on your desktop with our RSS feeds.
Buy a link now! Add BusinessWeek news to your Web site with our headline feed. Click to buy an e-print or reprint of a BusinessWeek or BusinessWeek Online story or video. To subscribe online to BusinessWeek magazine, please click here. Learn more, go to the BusinessWeekOnline home page  | | |
 Copyright 2006, by The McGraw-Hill Companies Inc. All rights reserved.Terms of Use | Privacy Notice |
Printer-Friendly Version