Triumph Group downgraded to Underperform from Buy at BofA

BofA analyst Ronald Epstein downgraded Triumph Group (TGI) to Underperform from Buy with a price target of $12, down from $17. Transformation efforts have yielded a leaner, more focused portfolio, but these positive changes are being overshadowed by Triumph’s reliance on uncertain aircraft production rates by Boeing (BA) and Airbus (EADSY), the analyst tells investors. In terms of the 737, the Installations segment is producing at a rate of 13 per month, which the firm calls “far below the rate required for margin expansion.” In Composites/Cabin Components, the production rates of 30 per month are currently “positive,” but the firm sees further downside risk, the analyst added.