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On Monday, RBC Capital Markets updated its outlook on Howmet Aerospace Inc. (NYSE: HWM (BMV:HWM)), raising the price target to $200 from the previous $165, while maintaining an Outperform rating on the stock. The aerospace company has seen its shares climb 60.57% year-to-date, trading near its 52-week high of $177.25, becoming the top performer in RBC Capital’s coverage universe. According to InvestingPro data, the company maintains a perfect Piotroski Score of 9, indicating exceptional financial strength.
The adjustment in the price target comes amid a positive shift in sentiment towards original equipment (OE) manufacturers in the aerospace sector. RBC Capital’s analysts believe that Howmet Aerospace’s recent performance, coupled with a favorable market environment, suggests potential for further near-term growth in the stock’s value. With a market capitalization of $70.89 billion and a strong consensus analyst rating of 1.58 (Buy), the company has attracted significant institutional interest. InvestingPro analysis suggests the stock is currently trading above its Fair Value, with 15+ additional insights available to subscribers.
In the first quarter of 2025, Howmet Aerospace significantly improved its margin profile, a development that analysts at RBC Capital consider to be sustainable. They anticipate that the company has additional room for margin expansion moving forward, building on its current EBITDA of $2.008 billion. The new price target of $200 is based on a multiple of 29.3 times the firm’s adjusted EBITDA forecast of $2.87 billion for the year 2027. For deeper insights into Howmet’s valuation metrics and growth potential, investors can access the comprehensive Pro Research Report available on InvestingPro.
The firm’s confidence in Howmet Aerospace is rooted in the company’s strong first-quarter results and the broader positive trends within the aerospace original equipment market. This sector’s sentiment has been improving, which RBC Capital suggests could lead to continued re-rating and stock performance.
Investors and market watchers will likely monitor Howmet Aerospace’s progress closely, as the company’s strategic moves and market conditions align to potentially drive further gains in its stock price as projected by RBC Capital Markets.
In other recent news, Howmet Aerospace Inc. announced its first-quarter 2025 results, highlighting a record cash flow and a stock repurchase of $125 million. Benchmark analysts responded by raising the company’s price target from $135 to $165, maintaining a "Buy" rating, citing the company’s strong performance and updated fiscal guidance. KeyBanc analysts also maintained their Sector Weight rating, noting increased earnings estimates for 2025 due to improved profit margins, while acknowledging the company’s operational strengths in its Fasteners and Structures divisions. Additionally, Howmet Aerospace held its annual shareholder meeting, where all board nominees were elected, and key proposals, including the ratification of PricewaterhouseCoopers LLP as the independent auditor, were approved. In other developments, CEO John Plant sold 800,000 shares for estate planning purposes, though he remains a significant shareholder with over 3 million shares. Meanwhile, David J. Miller resigned from the Board of Directors, with no disagreements cited, and the company expressed gratitude for his contributions. These updates reflect Howmet Aerospace’s ongoing strategic initiatives and market positioning.
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