Gautam Khanna, an analyst from TD Cowen, maintained the Buy rating on Howmet Aerospace. The associated price target remains the same with $200.00.
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Gautam Khanna has given his Buy rating due to a combination of factors that highlight Howmet Aerospace’s strong performance and strategic positioning. The company’s impressive incremental margin in the second quarter, despite increased headcount for new capital expenditures, demonstrates its effective execution and pricing strategy. This, coupled with its status as a well-managed large-cap aerospace original equipment manufacturer with significant pricing power, makes it an attractive investment.
Howmet Aerospace’s financial outlook is further strengthened by its raised EBITDA and sales guidance, driven by better margin traction and increased production rates for key products like the 737. The company’s strategic investments in new facilities, such as the engine air foils plants, are expected to yield high returns and contribute to future earnings growth. Additionally, Howmet’s ability to capture market share from competitors and its disciplined approach to managing leverage and capital expenditures further support the Buy rating.
In another report released yesterday, Vertical Research also maintained a Buy rating on the stock with a $210.00 price target.
Based on the recent corporate insider activity of 41 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of HWM in relation to earlier this year.