Analyst downgrades Moog, Curtiss-Wright rating

Analyst downgrades Moog, Curtiss-Wright stock rating on limited visibility, valuation

• On 1:15 pm EDT, Monday September 21, 2009

WASHINGTON (AP) -- An analyst on Monday downgraded Moog Inc.'s and Curtiss-Wright Corp.'s stock rating based on valuation and limited visibility, despite an improved economic outlook.

Boenning & Scattergood analyst Michael Ciarmoli lowered ratings for Moog, a supplier of precision control systems, and Curtiss-Wright, an industrial supplier to military and commercial customers, to "Neutral" from "Outperform" after the stocks fell below his targets of $33 and $36, respectively.

Since mid-July, Moog and Curtiss-Wright shares have risen roughly 44 percent and 29 percent, respectively.

While the economic outlook, including commercial aerospace and industrial outlook, has improved, Ciarmoli said, he was not inclined to lift estimates for both companies' fiscal 2010 earnings higher due to lack of visibility and confidence.

"While the bleeding has stopped, meaningful order flow has not materialized and we suspect both Boeing Co. and Airbus are likely to tweak their production schedules lower for 2010, which may pressure the company's aircraft controls segment," Ciarmoli, wrote in a note to clients.

"These lingering concerns lead us to believe that near-term results may still be under pressure, which may cause the stock to trade sideways or trend lower in the coming months," he wrote.

Shares of Moog fell 62 cents to $31.97 in afternoon trading, while shares of Curtiss-Wright fell 31 cents to $35.69.

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