Update shared on 20 Nov 2025
Fair value Increased 2.95%Analysts have increased their price target for Howmet Aerospace from $225 to $232 per share. They cite the company’s stronger revenue growth outlook, robust margin performance, and continued optimism for high-margin expansion across its end-markets.
Analyst Commentary
Recent Street research highlights a broad wave of optimism surrounding Howmet Aerospace, with a series of upward price target revisions and upgrades driven by robust execution and strong guidance. Analysts' views emphasize the company's ongoing performance momentum and positive industry trends.
Bullish Takeaways- Consensus sees accelerating high-margin growth, supported by strong Q3 results and improved future guidance.
- Revenue growth projections remain compelling, with management targeting $9 billion in revenue by 2026. This suggests close to 10% year-over-year growth at the top end of updated 2025 guidance.
- Incremental margins are notably strong, with results in the latest quarter reaching 50%. This indicates further potential for profitability expansion.
- Industry tailwinds, such as higher production rates, increased engine spare demand, and growth in industrial gas turbines tied to data center demand, are viewed as drivers that could sustain momentum in key end-markets.
- Valuation revisions, with multiple price targets being raised significantly, reflect rising confidence in execution and the durability of earnings power.
What's in the News
- Truist upgraded Howmet Aerospace to Buy from Hold and raised its price target to $225, citing strong Q3 results, improved guidance, and expected growth from higher production rates and increased engine spare demand (Truist).
- Howmet Aerospace announced the planned redemption of all outstanding $3.75 Cumulative Preferred Stock shares on December 17, 2025, at $100 per share plus accrued dividends.
- The company has repurchased 1,597,686 shares for $300 million in the most recent tranche. This completes the buyback of over 31 million shares under the existing program.
- Ken Giacobbe, the longtime Chief Financial Officer, will retire at the end of 2025. Patrick Winterlich has been named as his successor effective December 1, 2025.
- Howmet provided new financial guidance, projecting $9 billion in revenue for 2026 and raising 2025 revenue expectations to between $8.175 billion and $8.195 billion.
Valuation Changes
- The Consensus Analyst Price Target has increased from $225.50 to $232.15, reflecting a moderate upward revision.
- The Discount Rate has risen slightly from 7.44% to 7.55%.
- The Revenue Growth Outlook has edged higher, moving from 9.98% to 10.06% annually.
- The Net Profit Margin has dipped marginally from 21.85% to 21.75%.
- The Future P/E Ratio has increased from 46.92x to 49.07x, indicating higher valuation expectations.
Disclaimer
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