Barnes Group upgraded to Buy at DA Davidson on Aerospace segment fundamentals

As previously reported, DA Davidson upgraded Barnes Group to Buy from Neutral with a price target of $45, up from $35. The firm finds the relative valuation “fairly undemanding in the current market environment,” particularly given the company’s commercial aerospace/defense exposure and tangible evidence that portfolio transformation remains a top priority. While it is leaving its EPS estimates unchanged, the firm says its upgrade thesis is predicated on the view that the Industrial-induced downward spiral is near or at a bottom and that Barnes’ “now-dominant Aerospace segment is benefiting from some of the healthiest fundamentals witnessed in the 20+ years we’ve covered Barnes Group,” the analyst tells investors.