TGI - Triumph upgraded at Jefferies as company caps six-year turnaround

Triumph Group (TGI +7.7%) jumps to a three-month high after Jefferies upgraded shares to Buy from Hold with a $26 price target, up from $20, saying revenues, profit and free cash flow are "all set to inflect" in culminating a turnaround that was six years in the making. Jefferies analyst Sheila Kahyaoglu forecasts Triumph's revenue growth accelerating from 3% in FY 2022 to 8% in 2023 based on improving N/B rates, EBITDA margins inflecting from 11.6% in 2022 to 14.6% in 2023 on volume and restructuring actions, and free cash flow improving from a use of $150M in 2022 to $58M generated in 2023 given the absence of Boeing advance repayments and other one-time items. Kahyaoglu said Triumph "had to unwind/divest 'bad' contracts [over the six years]; as such, the Structures business contracted from $2.6B of revenue in 2016 to $132M" expected for 2023. Last week, Triumph reported roughly in-line

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Triumph upgraded at Jefferies as company caps six-year turnaround