Howmet Aerospace: Accretive CAM Acquisition Underpins Buy Rating and Upside to $250 Target

Bank of America Securities analyst Ronald Epstein maintained a Buy rating on Howmet Aerospace yesterday and set a price target of $250.00.

Ronald Epstein has given his Buy rating due to a combination of factors tied to Howmet Aerospace’s planned acquisition of Consolidated Aerospace Manufacturing (CAM) and the resulting growth and profitability outlook. He views the $1.8 billion cash purchase as strategically attractive because it broadens Howmet’s presence in high-value aerospace and defense components, particularly precision fasteners and engineered parts used across commercial, defense, marine, and nuclear applications. The transaction is expected to add roughly $485–$495 million of revenue in fiscal 2026, with strong adjusted EBITDA margins above 20% even before accounting for cost synergies and tax advantages, translating into an attractive 13x EV/EBITDA multiple on 2026 projections.

Epstein also highlights that CAM’s customer base includes major aircraft manufacturers such as Boeing and Airbus as well as a range of defense customers, positioning Howmet to benefit from strengthening aircraft build rates and a robust aftermarket environment. Based on guidance from the seller, CAM’s revenue is anticipated to grow to $405–$415 million in 2025, implying solid year-over-year expansion into 2026 and reinforcing the earnings accretion potential of the deal. When combined with the expected recovery in widebody aircraft deliveries, ongoing strength in narrowbody production, and rising demand for fastener-related aftermarket services, the acquisition supports a favorable risk-reward profile for Howmet’s shares. Against this backdrop, he reiterates a Buy rating and a price objective of $250, indicating meaningful upside from the current trading level.

In another report released on December 12, Citi also initiated coverage with a Buy rating on the stock with a $246.00 price target.