Analyst Peter Arment of Robert W. Baird reiterated a Buy rating on Curtiss-Wright (CW – Research Report), with a price target of $228.00.
Peter Arment has given his Buy rating to Curtiss-Wright due to a combination of factors. He views CW as a top-tier operator with consistent growth in the Naval sector, bolstered by record-high Defense Electronics margins that are nearing their peak levels from 2019-202. Moreover, Arment notes that Commercial Aerospace tailwinds are still in play, and the sentiment within Commercial Nuclear markets for large GEN3+ reactor new builds and SMR partnerships is on the rise. He suggests that any short-term margin compression within the Naval & Power sectors should be disregarded as SMR partnerships will contribute to the revenue base in 2024 and beyond.
In addition, Arment points out that the third quarter showed promising numbers, with sales increasing by 15% and adjusted operating profit increasing by 17% year over year. He also highlights the strong growth within the Defense Electronics segment, driven by robust growth in embedded computing and flight test instrumentation on various fighter jet programs. The demand for Reactor Coolant Pumps (RCPs) is growing, with CW expecting orders to start materializing over the next 2-4 years. Lastly, Arment notes that the company has raised its 2023 guidance across multiple metrics, further solidifying his Buy rating.
Arment covers the Industrials sector, focusing on stocks such as AeroVironment, Boeing, and General Dynamics. According to TipRanks, Arment has an average return of 9.3% and a 60.53% success rate on recommended stocks.
In another report released on November 3, Truist Financial also maintained a Buy rating on the stock with a $225.00 price target.
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Curtiss-Wright (CW) Company Description:
Curtiss-Wright Corp. is a manufacturing and service company, which engages in the design, manufacture and overhaul of precision components; and provides engineered products & services to the aerospace, defense, power generation and general industrial markets. It operates through the following segments: Commercial/Industrial, Defense, and Power. The Commercial/Industrial segment comprises of businesses that involves in offering of engineered products and services supporting critical applications primarily across the commercial aerospace and general industrial markets. This segment also includes electronic throttle control devices and transmission shifters, electro-mechanical actuation control components, valves, and surface technology services such as shot peening, laser peening, coatings, and advanced testing. The Defense segment includes commercial off-the-shelf embedded computing board level modules, integrated subsystems, turret aiming and stabilization products, weapons handling systems, avionics and electronics, flight test equipment, and aircraft data management solutions. The Power segment includes main coolant pumps, power-dense compact motors, generators, secondary propulsion systems, pumps, pump seals, control rod drive mechanisms, fastening systems, specialized containment doors, airlock hatches, spent fuel management products, and fluid sealing products. The company was founded on July 5, 1929 and is headquartered in Charlotte, NC.
Read More on CW:
- Curtiss-Wright price target raised to $225 from $215 at Truist
- Curtiss-Wright raises FY23 EPS view to $9.00-$9.20, consensus $9.10
- Curtiss-Wright reports Q3 adjusted EPS $2.54, consensus $2.38
- CW Upcoming Earnings Report: What to Expect?
- Curtiss-Wright gets General Dynamics deal to provide MOSA for U.S. Army Stryker
