Ducommun price target lowered to $72 from $76 at RBC Capital

RBC Capital lowered the firm’s price target on Ducommun (DCO) to $72 from $76 and keeps an Outperform rating on the shares. The company’s Q4 results were “mixed” as revenue grew 2.6% and gross margins expanded 180bps from last year, but EPS was a miss with Structural System EBIT margins of just 3.6%, the analyst tells investors in a research note. RBC adds however that Ducommun is guiding to mid-single-digit revenues growth in 2025, with expected second half strength in commercial aero markets, and the firm also believes that valuation remains attractive.