Meggitt - Re: MGGT Stream Log - Meggitt Engineering play Meggitt (LSE:...

Meggitt Engineering play Meggitt (LSE: MGGT) is in great shape to reap the rewards of improving conditions in its key markets, in my opinion. Not only is the business set to benefit from critical Western nations boosting defence spend, but accelerating civil passenger numbers should also underpin a steady flow of aeroplane orders in the years ahead. The defence play recorded a rare earnings dip last year as constraints on military budgets weighed on sales. But this is expected to represent a mere blip in the Meggitt growth story, and the Christchurch firm is expected to clock up growth of 7% in both 2015 and 2016. Consequently the company deals on a P/E multiple of 15.1 times for this year, and which falls to a mere 14.2 times for 2016. With the company chucking record amounts at R&D, and the order book ticking steadily higher — this rose 9% last year alone — I expect Meggitt to record solid earnings expansion well beyond next year.