In a report released yesterday, Jason Gursky from Citi maintained a Buy rating on Ducommun (DCO – Research Report), with a price target of $91.00.
Jason Gursky has given his Buy rating due to a combination of factors that highlight Ducommun’s strong performance and future potential. The company reported first-quarter earnings that exceeded expectations, with an adjusted EPS of $0.83 compared to the consensus of $0.70. This was accompanied by robust margins in both gross and adjusted EBITDA, indicating efficient operations and cost management. The defense sector’s growth helped offset weaknesses in the commercial aerospace segment, showcasing Ducommun’s ability to navigate market challenges.
Furthermore, management expressed confidence in achieving their full-year 2025 outlook, with anticipated mid-single-digit revenue growth. Despite initial challenges in the first half of the year due to lower build rates and inventory reductions, the company expects positive momentum in the latter half as production rates increase. Additionally, Ducommun is on track to meet its VISION 2027 targets, reinforcing its long-term growth strategy. These factors, combined with a maintained target price of $91, support the Buy rating.
DCO’s price has also changed slightly for the past six months – from $65.650 to $60.860, which is a -7.30% drop .