20th Oct 2016 09:35
LONDON (Alliance News) - Senior's profit warning on Thursday is "highly disappointing", said N+1 Singer, as the broker cut its rating on the engineer to Hold from Buy.
Following the issues in the company's Flexonics business over the last 12 months was added to by the group's Aerospace business in the third quarter, said N+1 analyst Jon Lienard.
Senior said the Aerospace unit - which makes airframe components, ducting systems, and fabricated engine components - was trading below expectations in the quarter to the end of September. Senior said new aerospace production programmes had ramped up more slowly than expected, and it has been hit by some supplier problems in its UK and US businesses.
"In a period when some stability was required, this is disappointing," Lienard said.
N+1 cut its 2016 earnings-per-share estimate by 6.8% and and 6% for 2016 EPS.
The analyst still sees Senior as a potential takeover target from a US suitor but downgrades the stock and cuts its price target to 196.00 pence from 262.00p until there is more clarity on the group's direction.
Senior was one of the biggest fallers in the FTSE 250 on Thursday morning, down 16% at 171.00p.
By Neil Thakrar; [email protected]; @NeilThakrar1
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Senior