David Strauss of Barclays has recently adjusted the price target for Triumph Group (NYSE:TGI) to $18, suggesting a potential upside of about 28.48% from its cur

Triumph Group's Price Target Adjusted by Barclays


blog post cover photo

Image credit: Google Images

  • Barclays analyst David Strauss has lowered the price target for Triumph Group to $18, indicating a potential upside of 28.48%.
  • The company's fiscal fourth-quarter earnings outperformed expectations, with earnings of $0.31 per share on revenue of $358.59 million.
  • Despite operational challenges and a significant stock price decline over the past decade, Triumph Group is focusing on divesting unprofitable businesses and enhancing its core operations.

David Strauss of Barclays has recently adjusted the price target for Triumph Group (NYSE:TGI) to $18, suggesting a potential upside of about 28.48% from its current trading price of $14.01. This revision, announced on May 29, 2024, represents a decrease from a previous target of $20. Triumph Group, an aerospace component manufacturer, plays a crucial role in the aerospace-defense equipment industry, supplying key customers like Boeing. Despite facing challenges, including a significant stock price decline and operational hurdles, the company has been striving to improve its financial and operational performance.

Triumph Group's recent fiscal fourth-quarter earnings report exceeded analysts' expectations, with earnings of $0.31 per share on revenue of $358.59 million. This performance beat the Zacks Consensus Estimate of $0.12 per share by a remarkable 158.3%, showcasing the company's ability to surpass market expectations. However, despite these positive results, the company's stock experienced a downturn, trading down as much as 11.8% and closing the week 6% lower. This decline can be attributed to the company's guidance falling short of expectations, largely due to ongoing issues with Boeing, a key customer, which have delayed Triumph Group's recovery.

Over the past decade, Triumph Group has seen its shares lose about 80% of their value, a trend exacerbated by unprofitable contracts and supply chain issues. However, the company has been actively working to reverse this trend by divesting lower-margin or unprofitable businesses and focusing on its core competencies. These efforts are part of a broader strategy to stabilize and grow the company amidst the challenges it faces in the aerospace-defense sector.

The company's financial performance in the fourth quarter of fiscal 2024, including GAAP-based earnings of 7 cents per share and a notable improvement in sales, indicates a potential turnaround. This performance, coupled with the company's strategic adjustments, could be the foundation for the revised price target set by David Strauss of Barclays. Despite the recent stock price decline and the challenges ahead, Triumph Group's efforts to streamline its operations and focus on profitable segments may provide a path for recovery and growth, aligning with the new price target expectations.

Other Blogs

Nov 25, 2023 6:39 AM - Parth Sanghvi

DCF Valuation vs. Comparable Companies Analysis: Choosing the Right Valuation Method

Choosing the Right Valuation Method: DCF vs. Comparable Companies Analysis Introduction: Valuation methods play a pivotal role in determining the fair value of a company, aiding investors in making informed investment decisions. Two commonly used methods, DCF Valuation and Comparable Companies A...

blog post title

Dec 23, 2023 2:19 AM - Parth Sanghvi

Understanding the Limitations of DCF Analysis: A Guide to Overcoming Challenges

Introduction: Discounted Cash Flow (DCF) analysis stands as a cornerstone in valuing investments, yet its efficacy is contingent upon various assumptions and methodologies. While a powerful tool, DCF analysis comes with inherent limitations and challenges that investors must acknowledge to make i...

blog post title

Dec 25, 2023 2:28 AM - Parth Sanghvi

Integrating Sustainability into Valuations: Navigating ESG Factors within the Discounted Cash Flow (DCF) Model

Introduction: The investment landscape is undergoing a profound shift with a heightened emphasis on sustainability and responsible investing. In this blog post, we explore the intersection of Environmental, Social, and Governance (ESG) considerations within the Discounted Cash Flow (DCF) model, h...

blog post title


Financial Modeling Prep API provides real time stock price, company financial statements, major index prices, stock historical data, forex real time rate and cryptocurrencies. Financial Modeling Prep stock price API is in real time, the company reports can be found in quarter or annual format, and goes back 30 years in history.
2017-2024 © Financial Modeling Prep