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On Wednesday, Morgan Stanley (NYSE:MS) maintained an Overweight rating on Howmet Aerospace Inc . (NYSE:HWM) and increased the stock’s price target to $155 from the previous $125. The firm’s analysts underscored Howmet Aerospace’s position as a high-quality aerospace supplier, highlighting its potential benefits from the aircraft original equipment (OE) ramp-up and positive commercial aftermarket trends. With a current market capitalization of $55.3 billion and trading at $136.67, the stock has shown remarkable strength. Additionally, Howmet Aerospace is expected to gain from OE and spares growth in industrial gas turbine (IGT) power generation. According to InvestingPro data, the company currently appears to be trading above its Fair Value.
The new price target reflects Morgan Stanley’s confidence in Howmet Aerospace’s future performance. The analysts commented on the company’s outlook for 2025, suggesting that the projections might be on the conservative side. This optimism is supported by InvestingPro data showing 11 analysts revising their earnings estimates upward for the upcoming period. The firm reiterated its Overweight rating, signaling a positive expectation of the stock’s performance relative to the market, with analyst targets ranging from $81 to $159.65.
Howmet Aerospace’s stock adjustment follows the company’s strategic positioning to capitalize on the increasing demand within the aerospace sector, as well as the IGT power generation market. The company’s strong execution is evident in its 11.9% revenue growth and perfect Piotroski Score of 9, as reported by InvestingPro. The company’s focus on these areas is expected to drive growth and potentially exceed the current market expectations for 2025.
The Overweight rating by Morgan Stanley indicates that the analysts believe Howmet Aerospace shares could outperform the average total return of the stocks covered by the firm over the next 12 to 18 months. The price target upgrade to $155 signifies Morgan Stanley’s assessment of the stock’s potential to reach this level in the given timeframe.
Investors and market watchers will be keeping a close eye on Howmet Aerospace’s performance in the coming months, especially in light of the positive sentiment from Morgan Stanley. The company has already demonstrated strong performance with a 118.2% return over the past year. The updated price target and maintained Overweight rating suggest that Howmet Aerospace is well-positioned to navigate the market and deliver value to its shareholders. For a comprehensive analysis of Howmet Aerospace’s financial health, valuation metrics, and growth prospects, investors can access the detailed Pro Research Report available on InvestingPro.
In other recent news, Howmet Aerospace has received several positive updates from financial analysts following its latest earnings report. Bernstein SocGen raised its price target for the company to $154, highlighting Howmet’s impressive fourth-quarter results that surpassed revenue and earnings expectations. The firm noted the company’s improved financial guidance for 2025, with an anticipated growth rate increase to around 8%. Similarly, RBC Capital Markets maintained its Outperform rating with a $150 price target, acknowledging Howmet’s adjusted EPS of $0.74, which exceeded the consensus estimate.
BTIG also increased its price target to $150, citing strong quarterly sales and adjusted EBITDA margins. The analyst emphasized the company’s robust aftermarket performance as a key factor for continued growth. JPMorgan adjusted its target to $130, retaining an Overweight rating and noting that Howmet’s 2025 outlook aligns with sell-side expectations. TD Cowen raised its price target to $140, reiterating a Buy rating based on strong margins in the Fastener and Engineered Structures segments.
These recent developments indicate a broad consensus among analysts about Howmet Aerospace’s potential for growth. The company’s financial performance and strategic positioning in the aerospace sector have been key factors in the optimistic assessments. As Howmet continues to navigate the market, investors will be watching closely to see if the company meets or exceeds these expectations.
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