Industrials
Initiates coverage with a negative outlook due to a variety of fundamental concerns and earnings quality issues including: 1) Demand headwinds in defence and industrial businesses are pressuring other units. 2) Margin targets appear disconnected from recent performance. 3) Inventory levels have diverged from near-term demand estimates. 4) Outsized growth in receivables. 5) An unusual spike in other current assets. 6) Trades at a significant premium to its closest industry peers.
Edition: 159
- 28 April, 2023