UPDATE: Bank of America Upgrades Mistras Group Counting on Cycle and Improved Execution

In a report published Tuesday, Bank of America analyst Andrew Obin upgraded the rating on Mistras Group (NYSE: MG) from Neutral to Buy, and raised the price target from $19.00 to $28.00.

In the report, Bank of America noted, “We upgrade MG from Neutral to Buy as: 1) Expectations are low – MG was the worst performing stock in our coverage and trades at meaningful discount to peers, 2) Management is restructured to focus on improved execution, 3) Near-term pick up in refinery turnarounds and longer-term visibility on the US petrochem cycle. MG's stock was the worst performer of '13 in our multi-industrial coverage universe (only stock to post y/y decline in share price) following several quarters of misses and disappointing guidance driven primarily by execution. MG now trades at a meaningful discount to peers, even as we expect the operations in improve in CY14.”

Mistras Group closed on Tuesday at $20.81.