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Market Update: Precision Castparts Corp (NYSE:PCP) – EU clears Berkshire’s acquisition of Precision Castparts

[Reuters] – The European Commission said on Wednesday it had approved Berkshire Hathaway’s planned $32.3 billion acquisition of Precision Castparts Corp, a maker of aerospace and other parts. The Commission said in a statement it had concluded that the proposed acquisition would not raise competition concerns given the absence of horizontal overlaps and the limited vertical relationships between the activities of the two companies. The purchase is Berkshire’s largest, and accelerates its transformation from a company largely dependent on insurance businesses into one resembling the broader U.S. economy, including a railroad, several industrial companies, utilities, a car dealership and consumer goods businesses. Read more on this. Precision Castparts Corp. (PCP) , with a current value of $31.99B, ended trading at $232.30. Looking at today’s market, PCP one day range is $232.20 to $232.69 with the price of the stock fluctuating between $186.17 to $234.05 over the last 52 weeks. PCP shares are currently priced at 19.33x this year’s forecasted earnings, which makes them relatively expensive compared to the industry’s 2.05x earnings multiple for the same period. And for income investors, the company pays shareholders $0.12 per share annually in dividends, yielding 0.05%. According to a consensus of 10 analysts, the earnings estimate of $3.04 per share would be $0.05 worse than the year-ago quarter and a $0.18 sequential decrease. What we find to be interesting is that the full-year EPS estimate of $12.02 is a $0.63 setback when compared to the previous year’s annual results. The quarterly earnings estimate is predicated on a consensus revenue forecast of $2.50 Billion. If reported, that would be a 1.63% increase over the year-ago quarter. Recently, Wells Fargo downgraded PCP from Outperform to Market Perform (Oct 12, 2015). Previously, RBC Capital Mkts downgraded PCP from Outperform to Sector Perform. The average price target for PCP shares by the analysts covering it is $231.50, which is 0.34% below where the stock opened. See more in (NYSE:PCP) Similar Articles: Market Update: Precision Castparts Corp (NYSE:PCP) – Precision Castparts Second Quarter Fiscal 2016 Earnings Stock Update (NYSE:PCP): Wolf Popper LLP Investigates Claims That the Proposed Acquisition of Precision Castparts Corp. May Not Be In the Best Interests of Its Investors Company Update (NYSE:PCP): Precision Castparts Corp. Expands Its Machining Capabilities With the Acquisition of Noranco
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