We maintain our Underperform rating on Triumph Group, Inc. (TGI) based on the belief that there will be no significant recovery in the delivery of new commercial aircraft in the medium term. A weak commercial OEM market is likely to continue for the coming months.

Huge dependence on government spending as well as on Boeing, its largest customer, is also discouraging. Intense competition in the aerospace is likely to have an adverse impact on the company.

The company’s strategy to grow through acquisition involves risks that could adversely affect the operating results, including difficulties in integrating its recently acquired business.

Zacks Investment Research

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