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Trionfo Group (NYSE: TGI) earned in premarket trading on Thursday, when Wolfe Research upgraded its rating on the aerospace company to Outperform from Peer Perform, forecasting an upside of about 25% from its new price target of $18.
“Looking at FY25, medium-high SD sales growth appears to be a reasonable starting point coupled with EBITDA margin expansion of 150-200 basis points, which we believe could be slightly higher if the benefits of the cost-cutting effort materialize sooner,” Wolfe analysts said.
The financial services firm added that a roadmap for FY25 FCF leads to a positive number with ~$190-200 million EBITDA minus ~$100 million interest, $25 million capex, $20 million pension contributions and $6-8 million in taxes offsetting ~+$45 million before considering any working capital effects.
Wolfe said TGI’s Interiors and Geared Solutions segments are still recovering, while the Systems Electronics and Controls and Actuation Products and Services segments are driving earnings.
“Proactive cost reduction and customer switching looks encouraging for increasing results,” said analyst Myles Walton.
Year to date, TGI shares are down about 12%, while on a 12-month reading the stock is up about 34%.
Seeking Alpha’s Quant rates Triumph Group a Hold, giving it a score of 2.82 out of 5 for profitability and growth concerns.