Ronald Epstein, an analyst from Bank of America Securities, reiterated the Buy rating on Howmet Aerospace (HWM – Research Report). The associated price target was raised to $90.00.
Ronald Epstein has given his Buy rating due to a combination of factors including Howmet Aerospace’s strong first quarter earnings report and their prudent outlook on production rates. Despite Boeing’s challenges, Howmet’s conservative assumptions in their forecasts demonstrate a shrewd understanding of the industry. This intimate knowledge of the sector allows Howmet to smartly reallocate efforts to the spares market, which is anticipated to experience a surge in demand, particularly as long-term usage of narrowbody aircraft continues to rise.
Furthermore, Epstein’s optimism is bolstered by Howmet’s agnosticism between aftermarket and OEM demand, positioning it to benefit from the increased need for spare engine parts as planes are kept in service for longer durations. The company’s aftermarket services are expected to drive significant revenue growth in the coming years. Additionally, Howmet’s involvement in defense programs, such as the F-35, is expected to provide a robust growth trajectory, further reinforcing the Buy rating and the increased price objective to $90.
According to TipRanks, Epstein is a 5-star analyst with an average return of 8.3% and a 58.90% success rate. Epstein covers the Industrials sector, focusing on stocks such as Boeing, Hexcel, and CAE.
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Howmet Aerospace (HWM) Company Description:
Howmet Aerospace manufactures advanced engineered solutions tailored for the aerospace, defense, and transportation sectors. It focuses on jet engine components, aerospace fastening systems, and airframe structural components. The company also manufactures forged aluminum wheels for commercial transportation.
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