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ESL - Esterline Technoligies


valuebull

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In today's Barrons (4/27/15), Barrons mentioned that Meryl Witmer likes Esterline Technologies, a company that supplies commercial jet manufacturers (Boeing, Airbus, etc) with parts.

The current price is  $113.75 and she values the shares at $150.

She has confidence in the CEO Curtis Reusser, and thinks ESL will hit its 16% margin target, and generate $10 a share in FCF in 2017-2018.

 

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This is too expensive for my taste.

 

Assume it does hit $150 in 3 years, that is only a 9% annualized return.  For reference, ValueLine has their 2018-2020 estimate as $120-$180.  $150 is right in the middle.

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  • 1 month later...
Guest notorious546

any thoughts on this since the revised guidance? what do you guys place fair value at for the shares?

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