Analyst Andre Madrid from BTIG maintained a Buy rating on Carpenter Technology and keeping the price target at $305.00.
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Andre Madrid has given his Buy rating due to a combination of factors that highlight Carpenter Technology’s strategic positioning and growth potential. The company’s recent reclassification from Metals & Mining to Aerospace & Defense (A&D) reflects its successful penetration into the A&D market, with A&D sales consistently making up over 60% of its total sales for the past four quarters. This shift is significant as A&D stocks typically command higher valuation multiples compared to Metals & Mining stocks, suggesting potential for stock price appreciation.
Moreover, Carpenter Technology’s strong leverage in the A&D sector is underscored by robust demand dynamics, including high OEM build rates and sustained MRO demand. The company has effectively capitalized on these conditions by maintaining stable pricing, which supports margin expansion. As A&D sales remain a core component of Carpenter Technology’s strategy to maximize profitability, the company is well-positioned to continue its positive trajectory, justifying the Buy rating.
According to TipRanks, Madrid is a 5-star analyst with an average return of 29.1% and an 80.26% success rate. Madrid covers the Industrials sector, focusing on stocks such as V2X, AeroVironment, and Carpenter Technology.
In another report released today, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $274.00 price target.