KeyBanc Thinks B/E Aerospace's Businesses Will Not Be Purchased

Shares of B/E Aerospace (NASDAQ: BEAV) are down nearly five percent Wednesday afternoon, following the announcement that the company would be split into two companies: one focused on aircraft cabins and the other geared toward distribution logistics.

KeyBanc analyst Michael Ciarmoli commented on the split. First, he doesn't think the sale of either business is likely in the near future because of the tax benefits of a split. Regarding valuation, Ciarmoli thinks the sum of the parts are worth $128 per share: $95 contributed by the aircraft business and $34 for the services business.

B/E Aerospace is rated a Buy at KeyBanc with a $108 price target. Shares are currently trading down 4.68 percent to $94.25.