Benchmark Co. analyst Josh Sullivan maintained a Buy rating on Carpenter Technology (CRS – Research Report) today and set a price target of $250.00.
Josh Sullivan has given his Buy rating due to a combination of factors that highlight Carpenter Technology’s strong position in the aerospace industry. The company has demonstrated remarkable durability with significant lead-times for engine materials and the ability to adapt high-value alloys across various critical markets, including defense, OEM, aftermarket, and medical sectors. This adaptability, combined with a robust free cash flow profile, positions Carpenter Technology as a resilient player in the industry.
Furthermore, the company’s recent financial performance has been impressive, with a notable increase in order intake and record-setting margins in its Specialty Alloys Operations (SAO) segment. The Performance Engineered Products (PEP) segment also shows potential for margin improvement as volumes increase. Despite macroeconomic uncertainties, long-term agreements remain unaffected, with customers focusing on securing necessary materials for future aircraft and engine production. These factors collectively support Sullivan’s optimistic outlook and Buy rating for Carpenter Technology.
In another report released on April 15, J.P. Morgan also maintained a Buy rating on the stock with a $240.00 price target.