In a report released today, Gautam Khanna from TD Cowen maintained a Buy rating on Carpenter Technology, with a price target of $305.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Gautam Khanna has given his Buy rating due to a combination of factors that highlight Carpenter Technology’s strong performance and promising outlook. The company’s recent quarterly results demonstrate impressive execution and demand momentum, with record margins and significant growth in key areas such as engine and fastener sales. This resilience in execution and strategic management of product mix in high-margin markets underscores the company’s robust position.
Moreover, despite potential industry concerns about increased nickel alloy capacity, Khanna believes that Carpenter Technology’s pricing power will remain intact due to long certification lead times and customer adaptability to price changes. Additionally, the company has shown adept management through fluctuating demand environments, consistently surpassing expectations. This track record, along with proactive maintenance strategies and strong guidance adherence, justifies a premium valuation and supports the Buy rating.
According to TipRanks, Khanna is a top 25 analyst with an average return of 18.1% and a 73.45% success rate. Khanna covers the Industrials sector, focusing on stocks such as Boeing, Booz Allen, and General Dynamics.
In another report released on July 22, J.P. Morgan also reiterated a Buy rating on the stock with a $305.00 price target.