UPDATE: Deutsche Bank Upgrades B/E Aerospace Inc

In a note published Friday morning, Deutsche Bank analyst Myles Walton upgraded shares of B/E Aerospace Inc (NASDAQ: BEAV) from Hold to Buy and raised the price target slightly from $95 to $96.

Walton's upgrade comes on the assumption that a leveraged spin-off is more likely than a sale of all or part of the business. He noted the company's core would remain a manufacturing business with the spin off being the distribution business. Additionally, Walton stated his price target is based on a sum-of-the-parts valuation of the two businesses.

Looking ahead, Walton is estimating an EPS in the third and fourth quarter of 2014 of $1.16 and $1.09, respectively, as well as a full-year EPS of $4.43.