Update shared on 04 Dec 2025
Analysts have raised their price target on Howmet Aerospace to $250 from $215, citing accelerating high margin growth, sustained double digit revenue expectations through 2026, and strengthening demand across aero and industrial gas turbine end markets.
Analyst Commentary
Street research remains overwhelmingly constructive on Howmet Aerospace, with multiple firms lifting price targets in response to strong quarterly execution and a clearer long term growth algorithm through 2026.
Bullish Takeaways
- Bullish analysts highlight that Howmet is outgrowing its end markets, with accelerating high margin growth that supports a higher earnings power and justifies premium valuation multiples.
- Recent Q3 results beat expectations across key metrics, with lifted guidance and incremental margins around 50 percent, reinforcing confidence in management execution and operating leverage.
- Long term revenue targets, including a path toward roughly 10 percent year over year growth into 2026, underpin the raised price targets and support a thesis of durable double digit earnings growth.
- Improving aero original equipment production rates and rising engine spares demand over the next five years, alongside robust industrial gas turbine demand from data center build outs, are seen as structural drivers of sustained top line and margin expansion.
What's in the News
- Truist upgraded Howmet Aerospace to Buy from Hold, lifting its price target to $225 after a Q3 beat, higher guidance, and management commentary pointing to roughly 10 percent annual growth through 2026 (Truist research note).
- Howmet announced plans to redeem all outstanding $3.75 Cumulative Preferred Stock on December 17, 2025, at $100 per share plus $0.8125 in accrued but unpaid dividends, covering 546,024 preferred shares.
- The company updated its outlook, guiding Q4 2025 revenue to between $2.09 billion and $2.11 billion and confirming full year 2025 revenue of between $8.175 billion and $8.195 billion, with approximately $9 billion of revenue targeted for 2026, about 10 percent year over year growth.
- From July 1 to October 30, 2025, Howmet repurchased about 1.6 million shares for $300 million, completing a $1.903 billion buyback program that retired more than 31.5 million shares since 2021.
- Longtime CFO Ken Giacobbe will retire on December 31, 2025, with former Hexcel executive Patrick Winterlich joining as Chief Financial Officer effective December 1, 2025, providing a one-month transition overlap.
Valuation Changes
- Fair Value: Unchanged at approximately $232.15 per share, indicating no shift in modeled intrinsic value despite updated assumptions.
- Discount Rate: Risen slightly from about 7.55 percent to roughly 7.78 percent, reflecting a modest increase in the required return for equity holders.
- Revenue Growth: Effectively unchanged at about 10.06 percent annually, signaling stable expectations for top line expansion through the forecast period.
- Net Profit Margin: Essentially flat at roughly 21.75 percent, suggesting no material revision to long term profitability assumptions.
- Future P/E: Edged higher from approximately 49.1x to about 49.4x, implying a marginally richer valuation multiple on forward earnings.
Disclaimer
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