Credit Suisse Reiterates Outperform, Raises PT On Orbital ATK On Compelling Investment Story

In a report published Wednesday, Credit Suisse analyst Robert Spingarn reiterated an Outperform rating on Orbital ATK Inc. (NYSE: OA), and raised the price target from $61.04 to $87.00.

In the report, Credit Suisse noted, "OA is well positioned in a bottoming defense market and a growing commercial space market, and we view this as an exciting margin & cash flow story which will support a favorable (and balanced) capital allocation strategy which could be announced following a board meeting this week. We have rebuilt our model using the limited pro-forma information available and within the context of OA's 3-year financial targets. Our new FY'15-17 EPS estimates are $4.24/$4.90/$5.66, and our updated TP is $87 (equal blend of peer P/E and target FCF yield methodologies). We reiterate Outperform."

Orbital ATK Inc. closed on Tuesday at $72.06.