Citing reduced commercial aerospace demand visibility, Longbow analyst Christopher Olin downgrades Arconic (NYSE:ARNC) to Neutral from Buy going into Q2 updates by aerospace OEM companies.
Channel checks are showing "too many negative survey data” to remain confident in the 2020 estimates for across the entire specialty materials group, according to Olin.
He also notes that a potential rate cut announcement issued by Boeing or GE - due to an extended 737 MAX re-certification timeline - is likely to negatively impact investor sentiment in 2H19.
ARNC -1.6% premarket
Source: Blomberg First Word
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