MARKET TALK: Citigroup Initiates Meggitt At Buy

28th Jun 2010 07:08

0608 GMT [Dow Jones] Citigroup initiates Meggitt (MGGT.LN) with a buy rating and 400p target price. Says the management is well regarded and Meggitt shares have been long-term outperformers. Brokerage is positive on civil aerospace, where it believes recovering airline traffic should drive an early-cycle recovery in Meggitt's aftermarket business. Adds the original equipment outlook has also improved, with a late-cycle decline in large jet deliveries now looking increasingly unlikely. Also says significant further falls in regional or business jet production also look unlikely. Adds Meggitt has an attractive combination of modest operating and financial leverage. Shares closed at 310p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 28, 2010 02:08 ET (06:08 GMT)