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BTIG set its price target for the stock at $280. This follows a similar move by Jefferies, which kept its Buy rating and set a higher target of $350 earlier in the week. These targets sit above the current price of about $223, suggesting analysts expect the stock to rise as demand for jet engine parts and data center power turbines remains high. The average target across all firms tracking the company is now roughly $328.
Source: BTIG
KeyBanc upgraded the company to its version of a buy rating on Tuesday. The firm's analysts see the recent drop in the stock price as a chance to own a critical supplier that is still seeing high demand for its jet engine parts and fasteners.
While the stock has been volatile lately, the average price target across all analysts who follow the company is about $324. This upgrade suggests that Wall Street remains confident in the company's role as a vital manufacturer for both the aviation and data center power industries.
Source: Keybanc
After Howmet Aerospace reported its October results, we updated our fair value and raised our quality score to 4.6. We increased our profit projections for the engine and gas turbine businesses, and we added the impact of aluminum price changes on the wheels division to what we watch. We also added the share of growth coming from acquisitions versus the company's own operations to our core tracking.
Howmet brought in about 2.7 billion dollars in sales last quarter, which was better than analysts expected. The company is benefiting from a massive backlog of orders for new planes, which requires a steady stream of its specialized engine parts and fasteners. Profits also grew faster than sales, as the company became more efficient at its factories.
Management raised its financial goals for the full year and gave an early look at 2027, where it expects sales to grow another 12 percent. The company also announced it will buy back 5 billion dollars of its own stock, a move that returns cash to shareholders by reducing the total number of shares. This performance shows that even with broader economic questions, the aerospace manufacturing cycle remains in a very strong phase.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
Orders for US-manufactured capital goods, which are long-lasting items like machinery and equipment, grew in September. Shipments of these products also picked up speed. This suggests that businesses are still investing in new equipment despite higher borrowing costs.
For a company like Howmet that makes high-performance parts for engines and industrial turbines, this is a healthy sign. It shows that the broader demand for complex industrial hardware remains steady, which supports the company's growth in its non-aerospace divisions like power generation.
Source: Reuters
Management has beaten expectations for eight straight quarters, often by wide margins, showing they are consistently underestimating how fast their specialized engine business is growing.
| Expectation | |
|---|---|
| EPS | $1.48 |
| Revenue | $2.76B |
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