** Aircraft parts maker Meggitt, sent reeling bylast week's profit warning, top of FTSE 100 on Barclaysnote entitled "Too cheap to ignore" -- which flags up that thecompany is an oft-cited M&A candidate
** Profit warning on Oct 28 saw Meggitt shares lose morethan a fifth of their value, sharpest one-day drop since Nov1987; weakness seen across businesses
** Too cheap: 10x FY16 P/E, 9x EV/EBITA with comfortablyaffordable div yielding c4.5%; like the market, broker hasconcerns around near term visibility and capital deploymentdiscipline, "but this looks to be more than in the price"
** Slashes PT by about a third to 420p, implies 19% upside
** Says co would need only mild news flow around M&A to seea swift rerating
** Flags 3 big moves related to co as M&A prey: news articleof United Tech takeover possibility, news of Nigel Rudd'sappointment as Chairman (reputation as a veteran dealmaker) andnews article of possible merger with Cobham (RM:rahul.b.thomsonreuters.com@reuters.net)
