Added to YB: 2024-05-14
Pitch date: 2024-05-13
DCO [bullish]
Ducommun Incorporated
+62.45%
current return
Author Info
Directionally Correct Research shares is a generalist hedge fund analyst sharing stock pitches in the small to mid cap space. Sign up for the newsletter.
Company Info
Ducommun Incorporated provides engineering and manufacturing services for products and applications used in the aerospace and defense, industrial, medical, and other industries in the United States.
Market Cap
$1.4B
Pitch Price
$57.18
Price Target
81.93 (-13%)
Dividend
N/A
EV/EBITDA
14.05
P/E
-39.34
EV/Sales
1.96
Sector
Aerospace and Defense
Category
special_situation
Reading Tea Leaves: Two Budding Buyout Targets - Ducommun Incorporated
DCO: Rejects $60 (10x '24 EBITDA) PE bid. Standalone: 3.5% rev CAGR to '27, 400bps margin expansion credible given aero recovery & cost cuts. Deal: CEO incentives now aligned (+$7M), owns 2%+. Margins: 9.7% in '17 to 13.4% in '23 despite Boeing issues. Mispriced at 9.5x EBITDA.
Read full article (2 min)