Analyst Gautam Khanna from TD Cowen maintained a Buy rating on Carpenter Technology (CRS – Research Report) and increased the price target to $230.00 from $200.00.
Gautam Khanna has given his Buy rating due to a combination of factors that highlight Carpenter Technology’s strong performance and future potential. The company’s ability to achieve record margins for four consecutive quarters demonstrates its effective execution and robust demand in high-margin markets. Notably, sales in engines and fasteners have shown significant growth, and the company has managed to maintain stable lead times despite high demand.
Additionally, Carpenter Technology’s strategic surcharge mechanisms mitigate the impact of tariffs, ensuring that raw material price increases are passed through. The company’s upward revision of its EBIT guidance for fiscal year 2025 further underscores its positive outlook. Moreover, Carpenter Technology’s adept management and consistent track record of exceeding expectations justify a premium valuation, supporting the Buy rating with a price target of $230.
According to TipRanks, Khanna is a top 25 analyst with an average return of 14.9% and a 70.08% success rate. Khanna covers the Industrials sector, focusing on stocks such as Boeing, Carpenter Technology, and Hexcel.
In another report released on April 25, Benchmark Co. also maintained a Buy rating on the stock with a $250.00 price target.