Stifel cuts Curtiss-Wright target to $331, retains hold rating

Published 14/02/2025, 20:38
Stifel cuts Curtiss-Wright target to $331, retains hold rating

On Friday, Stifel analysts adjusted their outlook on Curtiss-Wright stock, reducing the price target to $331 from the previous $370 while maintaining a Hold rating. The revision follows Curtiss-Wright's release of their fourth-quarter 2024 financial results, which exceeded consensus expectations for revenue and earnings per share (EPS). Despite the positive performance, shares of Curtiss-Wright (NYSE:CW) experienced a slight decline of 1.2% compared to the S&P 500's 1% gain, and continued to trend downward today.

The analysts remain positive about Curtiss-Wright's future, citing "very good" prospects bolstered by "strong market tailwinds in defense and nuclear." They anticipate that the returns from the company's growth investments will start to materialize, potentially leading to sustained revenue growth over time. Despite these favorable conditions, the analysts express caution due to the company's current valuation, which has influenced their decision to stay on the sidelines for the time being.The stock's dip following the earnings report and the subsequent price target adjustment suggest that market reactions can be complex, even in the face of strong company performance. While the stock has delivered an impressive 44.4% return over the past year, InvestingPro analysis suggests the stock is currently overvalued based on its proprietary Fair Value model. Stifel's analysts emphasize that while the fundamentals of Curtiss-Wright appear sound, with the company set to benefit from positive industry trends, valuation concerns are a significant factor in their continued Hold stance on the stock. For a deeper understanding of Curtiss-Wright's valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

The analysts remain positive about Curtiss-Wright's future, citing "very good" prospects bolstered by "strong market tailwinds in defense and nuclear." They anticipate that the returns from the company's growth investments will start to materialize, potentially leading to sustained revenue growth over time. Despite these favorable conditions, the analysts express caution due to the company's current valuation, which has influenced their decision to stay on the sidelines for the time being.

The stock's dip following the earnings report and the subsequent price target adjustment suggest that market reactions can be complex, even in the face of strong company performance. Stifel's analysts emphasize that while the fundamentals of Curtiss-Wright appear sound, with the company set to benefit from positive industry trends, valuation concerns are a significant factor in their continued Hold stance on the stock.

In other recent news, Curtiss-Wright Corporation has been making significant strides in various areas. The company declared a quarterly dividend of $0.21 per share, demonstrating its commitment to delivering shareholder value. In addition, it secured a $27 million contract to supply the U.S. Navy with its Aircraft Ship Integrated Securing and Traversing systems, part of a larger five-year agreement potentially worth close to $100 million.

Curtiss-Wright also attracted the attention of Citi, which initiated coverage on the company's shares with a Buy rating, anticipating a cash-positive trajectory by 2026 due to consistent debt reduction. Furthermore, the company completed the acquisition of Ultra Energy for $200 million, a move expected to expand its global commercial nuclear portfolio and support its long-term financial goals.

Finally, Curtiss-Wright announced an expansion of its share repurchase program by $100 million, aiming to complete the buyback by the end of 2024, underscoring its confidence in the company's financial position and future growth prospects. These are all recent developments that highlight the company's ongoing activities and strategic decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.