Teledyne upgraded to Buy at BofA as DI segment bottoms

As previously reported, BofA upgraded Teledyne (TDY) to Buy from Neutral with a price target of $550, up from $450. The firm sees Teledyne reaching the low point in the cycle, with potential upside ahead on the recovery, specifically in the Digital Imaging, or DI, segment. BofA sees the cost takeout initiatives implemented in DI providing significant margin opportunity while industrial automation markets recover, the analyst tells investors. The firm doesn’t anticipate a sudden inflection, but is bullish on the return to growth, return to M&A, and strong long-cycle markets creating a buying opportunity for investors, the analyst added.