Taglich Brothers Initiates Coverage of Air Industries Group, Inc. (AIRI)
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New York, NY - December 20, 2013 (www.investorideas.com newswire) Taglich Brothers released an initial research report on Air Industries Group, Inc. (AIRI) with a Speculative Buy rating and a 12-month price target of $10.50 based on a multiple of 24X applied to our 2014 EPS projection. Our price target and the dividend yield imply a total year-ahead return of 20%. The report noted the following key investment considerations:
With its strategic acquisitions and a majority of revenue generated from defense programs that are projected to grow, we believe the company is poised for strong growth in 2014.
On November 7, 2013, Air Industries announced it acquired Miller Stuart, Inc. of Hauppauge , New York . Miller Stuart is a manufacturer of aerospace components whose customers include major aircraft manufacturers and the US Military.
On November 4, 2013, Air Industries announced it has been awarded a $27 million multi-year commercial aircraft contract from an aerostructures manufacturer. Deliveries are expected over six years beginning in the first half of 2014. On December 2, 2013, Air Industries announced it has been awarded a follow-on contract valued at $11 million over six years beginning mid-2014.
We project FY13 sales will decrease 4% to $61.4 million primarily due to significant cuts in the defense budget. Excluding a $1.8 million tax benefit related to a valuation allowance reversal, we estimate 2013 net income of approximately $0.32 per share. We project 2014 sales will grow 16% to $71 million based on recent accretive acquisitions, growth in the company's existing defense programs, and new commercial programs. We project 2014 EPS of $0.44.
Air Industries Group, Inc., headquartered in Bay Shore , New York , operates primarily in the aerospace and defense industry. The company designs and manufactures structural parts and assemblies, including landing gear, arresting gear, engine mounts, flight controls, throttle quadrants and other components. Air Industries also provides sheet metal fabrication of aerostructures, tube bending and welding services.
Taglich Brothers, Inc. is full-service broker dealer focused exclusively on microcap companies. The Company defines the microcap segment of the equity market as companies with less than $250 million in market capitalization. Taglich Brothers currently offers institutional and retail brokerage services, investment banking and comprehensive research coverage to the investment community.
The Taglich Brothers' Equity Research department is dedicated to providing research reports that are informative, insightful and illuminating. Reports are designed to distill volumes of investment information into a concise, straightforward format so that busy professional investors can make informed investment decisions.
The information and statistical data contained herein have been obtained from sources, which we believe to be reliable but in no way are warranted by us as to accuracy or completeness. We do not undertake to advise you as to changes in figures or our views. This is not a solicitation of any order to buy or sell. Taglich Brothers, Inc. is fully disclosed with its clearing firm, Pershing, LLC, is not a market maker and does not sell to or buy from customers on a principal basis. The above statements are the opinion of Taglich Brothers, Inc. and are not a guarantee that the target price for the stock will be met or that predicted business results for the company will occur. There may be instances when fundamental, technical and quantitative opinions contained in the reports are not in concert. We, our affiliates, any officer, director or stockholder or any member of their families may from time to time purchase or sell any of the above-mentioned or related securities. Analysts and members of the Research Department are prohibited from buying or selling securities issued by the companies that Taglich Brothers, Inc. has a research relationship with, except if ownership of such securities was prior to the start of such relationship, then an Analyst or member of the Research Department may sell such securities after obtaining expressed written permission from Compliance. All research issued by Taglich Brothers, Inc. is based on public information. Taglich Brothers, Inc. has an Investment Banking relationship with the company. In April and May of 2007, Taglich Brothers Inc. served as the placement agent in the sale of convertible preferred stock for the company. In June 2008, Taglich Brothers, Inc. served as the placement agent in the sale of junior subordinated notes for the company. In September and October of 2008, Taglich Brothers, Inc. served as the placement agent in the sale of junior subordinated notes and convertible preferred stock for the company. In October 2013, Taglich Brothers, Inc. served as the placement agent in the sale of common stock for the company. All research issued by Taglich Brothers, Inc. is based on public information. The company paid a monetary fee of $1,500 (USD) in October 2013 for the creation and dissemination of research reports. After the initial publication, the company will pay a monthly monetary fee of $1,500 (USD) to Taglich Brothers, Inc., for a minimum of six months for the creation and dissemination of research reports.
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