Fiserv earnings missed by $0.61, revenue fell short of estimates
On Monday, Stifel analysts adjusted their outlook on Curtiss-Wright (NYSE:CW) shares, reducing the price target to $309 from the previous $331, while keeping a Hold rating on the stock. The stock, currently trading at $316.65, has shown resilience with a nearly 10% gain over the past week, according to InvestingPro data. The revision comes amid concerns of a potential industrial recession in the United States, anticipated to occur in the second half of 2025 through the first half of 2026.
The Stifel analysts’ commentary highlighted the influence of U.S. trade policy on the industrial sector, suggesting that it may lead to a modest recession during the mentioned period. This economic downturn is expected to result in lower capital and operating expenditures from customers, which could directly affect Curtiss-Wright’s business operations. Despite these concerns, the company maintains strong fundamentals with a healthy current ratio of 1.69 and moderate debt levels.
The analysts also pointed out the risk of supply chain disruptions, which might cause Curtiss-Wright and its customers to decelerate production. The combination of reduced customer spending and potential manufacturing challenges presents a significant headwind for the company, prompting the revised price target.
Despite these concerns, Stifel has chosen to maintain a Hold rating on Curtiss-Wright stock. This indicates that while the analysts foresee challenges ahead, they do not necessarily recommend selling the stock at this time. The new price target of $309 reflects the analysts’ adjusted expectations based on the anticipated industrial slowdown and its projected impact on Curtiss-Wright. InvestingPro analysis suggests the stock is currently trading above its Fair Value, with analyst targets ranging from $304.55 to $432. For deeper insights into Curtiss-Wright’s valuation and 12 additional ProTips, explore the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Curtiss-Wright Corporation reported fourth-quarter 2024 financial results that surpassed analyst expectations for both revenue and earnings per share (EPS). Despite this strong performance, analysts at Stifel adjusted their outlook, lowering the price target to $331 from $370 while maintaining a Hold rating, citing valuation concerns. Truist Securities also maintained a Hold rating with a price target of $357, highlighting Curtiss-Wright’s consistent execution and growth potential in the Aerospace and Defense markets. Additionally, Curtiss-Wright secured significant contracts, including a $50 million deal with the U.S. Navy for high-speed data acquisition systems and contracts to supply turret drive stabilization systems for military vehicles in Germany and Hungary. These contracts are expected to bolster the company’s international defense revenues. Curtiss-Wright also announced a quarterly dividend of $0.21 per share, reflecting its commitment to shareholder value. The company’s strategic positioning in emerging markets, such as the Small Modular Reactor sector, and its robust defense contracts underscore its growth prospects. However, analysts note that external risks, like energy market volatility, should be monitored.
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