Analyst Ronald Epstein of Bank of America Securities maintained a Buy rating on Howmet Aerospace (HWM – Research Report), retaining the price target of $135.00.
Ronald Epstein’s rating is based on several strategic insights discussed during the BofA Global Industrials Conference with Howmet’s CEO, John Plant. The optimism in the commercial aerospace sector, particularly with Airbus’s production plans, suggests a favorable outlook for Howmet Aerospace. Despite some concerns about Boeing’s high inventory levels, the company is well-prepared to navigate potential destocking risks.
Additionally, Howmet is committed to expanding its industrial gas turbine business to meet the enduring demand. The company is also addressing supply chain challenges, such as those posed by the SPS facility fire, by ensuring long-term commitments and maintaining higher inventory levels to support production ramps. Furthermore, the aftermarket business is expected to thrive, with older aircraft fleets remaining active and new certifications on the horizon, reinforcing the Buy rating.
Epstein covers the Industrials sector, focusing on stocks such as Boeing, Embraer SA, and Rocket Lab USA. According to TipRanks, Epstein has an average return of 12.8% and a 61.22% success rate on recommended stocks.
In another report released on March 6, RBC Capital also maintained a Buy rating on the stock with a $150.00 price target.