Broker snap: UBS upgrades Meggitt to neutral

16th Jan 2012 09:16

UBS has upgraded aerospace, defence and energy market engineer Meggitt from sell to neutral on the back of improving foreign exchange movements and a nascent business jet recovery in North America.The broker says that Meggitt should benefit from the US dollar strength versus both the sterling and the Swiss franc.Additionally, analysts say they are seeing the first signs of a recovery in deliveries in North America, Meggitt's largest market, "with the small and mid-size deliveries rising about 10%."The earnings per share forecast for 2012 is raised by 2.4% and for 2013 by 4.5%, translating to a higher target price of 365p (from 330p previously).The stock was among the best performers on the FTSE 100 on Monday morning, trading up 1.07% at 368.8p by 09:16.BC