Analyst Ronald Epstein of Bank of America Securities reiterated a Buy rating on Howmet Aerospace, boosting the price target to $215.00.
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Ronald Epstein has given his Buy rating due to a combination of factors including Howmet Aerospace’s strategic positioning and growth potential in various sectors. Despite investor concerns following the company’s second-quarter results, Epstein emphasizes that Howmet’s strategic production rates below those of major aircraft manufacturers like Airbus and Boeing mitigate the risks associated with destocking. This positions Howmet favorably to benefit from the stabilizing production rates of these manufacturers, particularly in the Fasteners and Engine Products segments.
In addition to the aerospace sector, Howmet’s strong performance in the defense sector, with significant revenue growth driven by demand for legacy defense programs and the F-35, supports the Buy rating. The company’s Industrial Gas Turbines segment also shows promising growth, fueled by increasing power demands from data centers. Epstein highlights Howmet’s strategic investments in expanding capacity in Japan and Europe, which are expected to come online by 2026, as further evidence of the company’s growth potential. These factors collectively justify the increased price objective of $215.
In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $190.00 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.