- UBS continues to be positive on Rockwell Collins (NYSE:COL) saying their Buy rating continues to reflect firm's view that underappreciated growth opportunities and margin leverage can drive significant EPS upside beyond current consensus estimates. UBS believes Collins' margins can benefit from an improved revenue mix, as it swaps lower margin In-Flight Entertainment revenues for high margin Information Management revenues.
They believe COL can continue to generate revenue growth that outpaces its peer group as they think much of its recent market share gains are still to come through. This includes 787, business jets as well as increased Buyer Furnished Equipment (BFE).
Firm's FY 2007 and FY 2008 EPS estimates are $3.25 and $3.80, respectively. Their initial FY08 EPS estimate compares to $3.54 consensus and reflects high single-digit organic revenue growth combined with further margin expansion at Commercial driven by 30%+ incremental margins on higher volumes, decreased low margin IFE revenues and lower R&D as 787 spending trails off.
Tgt moves to $73 from $67.
Notablecalls: I like this note. David Strauss and his team seem to have high conviction regarding the story. Expect to see a positive reaction over the next couple of days. Looking at COL's ops it's is like Honeywell (NYSE:HON) and Garmin (NASDAQ:GRMN) rolled into one.
They believe COL can continue to generate revenue growth that outpaces its peer group as they think much of its recent market share gains are still to come through. This includes 787, business jets as well as increased Buyer Furnished Equipment (BFE).
Firm's FY 2007 and FY 2008 EPS estimates are $3.25 and $3.80, respectively. Their initial FY08 EPS estimate compares to $3.54 consensus and reflects high single-digit organic revenue growth combined with further margin expansion at Commercial driven by 30%+ incremental margins on higher volumes, decreased low margin IFE revenues and lower R&D as 787 spending trails off.
Tgt moves to $73 from $67.
Notablecalls: I like this note. David Strauss and his team seem to have high conviction regarding the story. Expect to see a positive reaction over the next couple of days. Looking at COL's ops it's is like Honeywell (NYSE:HON) and Garmin (NASDAQ:GRMN) rolled into one.
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