{"id":521721,"date":"2010-04-09T08:38:00","date_gmt":"2010-04-09T12:38:00","guid":{"rendered":"e2249889-c78b-43e3-9643-b1d7d4aa587b:420975"},"modified":"2010-04-09T08:38:00","modified_gmt":"2010-04-09T12:38:00","slug":"street-even-more-bullish-on-he%cc%81roux-devtek-inc-after-acquistion","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/521721","title":{"rendered":"Street even more bullish on He\u0301roux-Devtek Inc. after acquistion"},"content":{"rendered":"<p>\nShares in Quebec aerospace parts maker <a href=\"http:\/\/www.financialpost.com\/markets\/company\/index.html?symbol=HRX&amp;id=33193\" >He\u0301roux-Devtek Inc.<\/a> are expected to spike Friday after it announced earlier this week it would acquire Ohio-based Eagle Tool &amp; Machine and Co.\n<\/p>\n<p>While the transaction is relatively small at US$34-million, the news has made an already bullish Street even more so on the stock, which is quickly becoming the darling of the aerospace sector.\n<\/p>\n<p>The deal is expected to improve Heroux\u2019s earnings per share by 10% this year, or by roughly 5\u00a2 a share, and add US$125-million worth of work to its backlog, a 30% increase.\n<\/p>\n<p>\u201cWe were already bullish on [Heroux\u2019s] prospects, especially in-light of the emerging recovery in commercial aerospace markets,\u201d said Cameron Doerksen, Versant Partners analyst, in a note to clients. \u201cThis highly strategic acquisition reinforces<br \/>\nour positive view. We also believe that the acquisition could spark renewed investor interest in the stock.\u201d <\/p>\n<p>\nHe raised reiterated his \u201cbuy\u201d rating, but raised his price target on the stock to $8.80 a share from $8 previously.\n<\/p>\n<p>Likewise, Ben Cherniavsky, Raymond James analyst, raised Heroux from an \u201coutperform\u201d to a \u201cstrong buy\u201d on the news, and increased his price target to $7 a share from $6 previously. <\/p>\n<p>\nBenoit Poirier, Desjardins Securities analyst, raised his price target to $8 a share from $6.50 previously, in part because of the acquisition, but also as he rolled his target forward. He also reiterated his \u201cbuy\u201d rating.\n<\/p>\n<p>Mr. Poirier said he anticipates the deal, which is expected to close April 30, will be financed with Heroux&#39;s existing cash, which was roughly $30-million, and its current credit facility. <\/p>\n<p>But notes it comes with an added bonus of occurring when the Canadian dollar has increased considerably against the greenback.\n<\/p>\n<p>Heroux is a supplier of components for commercial and military aircraft, as well as the power generation market. It is the third-largest manufacturer of landing gear in the world. <\/p>\n<p>Shares in the company closed Thursday at $5.66 on the Toronto Stock Exchange following a 5.8% jump on the news of the acquisition.&nbsp; <\/p>\n<p>Scott Deveau <\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/network.nationalpost.com\/NP\/aggbug.aspx?PostID=420975\" width=\"1\" height=\"1\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Shares in Quebec aerospace parts maker He\u0301roux-Devtek Inc. are expected to spike Friday after it announced earlier this week it would acquire Ohio-based Eagle Tool &amp; Machine and Co. While the transaction is relatively small at US$34-million, the news has made an already bullish Street even more so on the stock, which is quickly becoming [&hellip;]<\/p>\n","protected":false},"author":6368,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-521721","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/521721","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/6368"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=521721"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/521721\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=521721"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=521721"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=521721"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}