Triumph Group rated Buy in reinstated coverage at Goldman Sachs

Triumph Group (NYSE:TGI) on Wednesday was rated Buy in reinstated research coverage at financial-services firm Goldman Sachs. Its analysts said the aerospace company is poised to benefit as aircraft deliveries rise and demand for what are known as aftermarket services remains strong.

Paying down debt is a key priority for Triumph (TGI) after divesting its product support business.

“We expect volume growth, pricing and recently enacted cost reductions to support margin expansion in the coming years,” Noah Poponak, analyst at Goldman Sachs, said in the March 20 report. “Relative to peers, we see a large opportunity for Triumph (TGI) to expand its margins closer to the industry average.”

Goldman Sachs set a price target of $18 a share on Triumph’s (TGI) stock, based on an estimated enterprise value that’s 10.5 times earnings before interest, taxes, depreciation and amortization for 2024.