Barclays initiates coverage on Meggitt at 'underweight'

14th May 2019 13:13

(Sharecast News) - Analysts at Barclays initiated coverage on engineering outfit Meggitt on Tuesday, hitting the firm with an 'underweight' rating and 460p target price straight out of the gate.Barclays came to its rating as a result of a worsening revenue mix from higher costs of civil original equipment, as well as continued composites drag, both structural and operational, and execution risks in delivering wide-ranging self-help activities in unison."We initiate at UW with a PT of 460p on a heightening FY19E risk profile from material H1 FY19E margin disappointment," said Barclays.The broker, which took a generally positive view of the industrials sector as a whole, also noted that it was 3% to 4% below consensus earnings per share estimates for the 2019/2020 fiscal year.