Carpenter Technology, the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Gautam Khanna from TD Cowen maintained a Buy rating on the stock and has a $380.00 price target.
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Gautam Khanna has given his Buy rating due to a combination of factors that highlight Carpenter Technology’s strong market position and future growth potential. The management of Carpenter Technology is optimistic about the sustained pricing power of jet engine alloys, which is expected to persist for years. This confidence is supported by the fact that downstream customers prioritize product quality and availability over pricing, indicating a favorable pricing environment for Carpenter Technology.
Additionally, Carpenter Technology’s sales strategy is robust, with non-long-term agreement sales being made for specific products at prices equal to or above those covered by long-term agreements. The company also benefits from strong demand for its gas turbine products, which, despite having lower average selling prices, still achieve aerospace-level margins. Furthermore, Carpenter Technology is nearing the end of a de-stocking phase with Boeing, positioning it well for future production rate increases. These factors collectively underpin Khanna’s positive outlook and Buy rating for the stock.
In another report released yesterday, KeyBanc also upgraded the stock to a Buy with a $380.00 price target.
Based on the recent corporate insider activity of 48 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 CRS in relation to earlier this year.