Goldman Sachs Changes PT Calcualtion Methodology for the Aerospace Sector

Goldman Sachs changed its methodology for calculating price targets for the aerospace sector.

In a research report published today, Goldman states, "We are rolling forward our Aerospace price target methodology of target P/E multiple to 2013 from 2012... Our framework now assumes a target 2013 P/E multiple of 14X for the group vs. our prior target of 15X for 2012 P/E and applies a premium/discount for individual names. Our new price targets... average 34% upside for the sector."

A number of companies in the sector have been affected by the changes.

The Boeing Company (NYSE: BA) had its price target raised from $87 to $95. On Monday, Boeing lost 0.35% of its value to close the day at $74.58. Its shares continued to slide in today's pre-market trading, falling 0.2% to $74.43.

BE Aerospace (NASDAQ: BEAV) had its price target increased from $48 to $54. On Monday, BE Aerospace added 0.1% to its value to close the day at $35.94.

Rockwell Collins (NYSE: COL) had its price target raised from $70 to $71. On Monday, Rockwell Collins lost 0.32% of its value to close the day at $59.46.

Embraer (NYSE: ERJ) had its price raised from $43 to $47. On Monday, Embraer lost 1.43% of its value to close the day at $31.11.

Goodrich Corporation (NYSE: GR) had its price target raised from $100 to $108. On Monday, Goodrich added 0.56% to its value to end the day at $85.07.

Hexcel Corporation (NYSE: HXL) had its price target raised from $24 to $25. On Monday, Hexcel added 1.86% to its value to finish the day at $19.69.

Precision Castparts (NYSE: PCP) had its price target raised from $180 to $200. On Monday, Precision Castparts added 0.08% to their value to close the day at $153.26. Its shares continued to move higher in today's pre-market trading, rising 0.31% to $153.74.

Spirit AeroSystems Holdings (NYSE: SPR) had its price target raised from $26 to $27. On Monday, Spirit AeroSystems lost 1.41% of its value to close the day at $21.05.

Textron (NYSE: TXT) had its price target increased from $31 to $33. On Monday, Textron lost 0.18% to close the day at $21.88.