RBC Capital raises Ducommun stock price target to $100 on defense growth

Published 08/08/2025, 14:48
RBC Capital raises Ducommun stock price target to $100 on defense growth

Investing.com - RBC Capital raised its price target on Ducommun Incorporated (NYSE:DCO) to $100.00 from $95.00 on Friday, while maintaining an Outperform rating on the aerospace and defense manufacturer. The stock, currently trading near its 52-week high of $93.41, has delivered an impressive 44.3% return year-to-date. According to InvestingPro data, analysts maintain a Strong Buy consensus on the stock, with price targets ranging from $99 to $108.

The upgrade follows Ducommun’s second-quarter 2025 adjusted earnings per share of $0.88, which exceeded the consensus estimate of $0.82. The company achieved adjusted EBITDA margins of 16% during the quarter. InvestingPro analysis indicates the company maintains a strong financial health score of GOOD, with liquid assets exceeding short-term obligations by a factor of 3.34x. Discover 10+ additional exclusive ProTips and comprehensive analysis in the Pro Research Report.

Defense growth emerged as a key highlight for Ducommun, with this segment expanding 16% and effectively offsetting softness in aerospace volumes. The company’s Engineered Products portfolio represented approximately 23% of total revenues.

Ducommun management expects mid-single-digit revenue growth in the third quarter of 2025, followed by low-double-digit growth in the fourth quarter. The company anticipates defense strength will counterbalance continued destocking risk.

RBC Capital noted that second-half 2025 defense strength should offset ongoing destocking headwinds, supporting its decision to maintain an Outperform rating while raising the price target.

In other recent news, Ducommun Incorporated reported its second-quarter 2025 earnings, exceeding analyst expectations. The company achieved an adjusted earnings per share (EPS) of $0.88, surpassing the forecasted $0.82. Additionally, Ducommun’s revenue reached $202.3 million, which was higher than the anticipated $198.97 million. These results demonstrate a positive earnings surprise for the company. Despite these favorable financial outcomes, the stock showed minimal movement. Analysts had projected the company’s performance, and Ducommun managed to deliver results above those projections. These developments highlight the company’s ability to outperform market expectations.

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