Howmet Aerospace's fair value target has been raised from $204.31 to $206.38. Analysts cite resilience in the aerospace supply chain along with continued confidence in the company's growth and margin expansion.
Analyst Commentary
Recent street research continues to reflect a strong sentiment toward Howmet Aerospace’s prospects, with analysts raising their price targets and maintaining optimistic outlooks for the company.
Bullish Takeaways- Analysts are encouraged by Howmet’s ability to strategically manage production rates below those of aircraft OEMs. This approach is expected to help the company avoid the negative impacts of destocking in the aerospace supply chain.
- The company’s growth and margin expansion outlook remains robust, supporting higher valuations and increased price targets across several coverage reports.
- Stabilizing trends in the commercial aerospace sector, such as improvements in aircraft production and order levels, are seen as especially favorable for Howmet’s business and its long-term prospects.
- Continued confidence in management’s execution and the company’s position in the aerospace supply chain are cited as key drivers for upward earnings revisions and target increases.
- Some uncertainty remains among investors following the latest quarterly results, particularly around the potential for further supply chain adjustments impacting future quarters.
- Bullish analysts acknowledge that despite strategic maneuvers, external market factors such as OEM production pacing or broader commercial aerospace volatility could challenge near-term performance.
- Cautious commentary highlights the need for Howmet to sustain its recent margin gains through potential industry demand fluctuations.
What's in the News
- The company raised its full-year 2025 earnings guidance, with expected revenue now projected to be in the range of $8.080 billion to $8.180 billion (Key Developments).
- The company completed a share repurchase tranche between April 1 and July 31, 2025, buying back 1,776,060 shares for $275 million as part of the broader buyback program that began in August 2021 (Key Developments).
- The company issued earnings guidance for the third quarter of 2025, projecting revenue between $2.020 billion and $2.040 billion (Key Developments).
- The Board of Directors declared a dividend of 12 cents per share, payable on August 25, 2025 to shareholders of record as of August 8, 2025 (Key Developments).
Valuation Changes
- Fair Value Target has risen slightly from $204.31 to $206.38.
- Discount Rate has increased marginally from 7.70 percent to 7.74 percent.
- Revenue Growth expectation has edged down from 10.16 percent to 10.14 percent.
- Net Profit Margin is essentially unchanged, decreasing slightly from 21.24 percent to 21.23 percent.
- Future P/E Ratio has risen modestly from 45.75x to 46.31x.
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