UPDATE: UBS Starts Howmet Aerospace Inc. (HWM) at Buy

UBS analyst Myles Walton initiates coverage on Howmet Aerospace Inc. (NYSE: HWM) with a Buy rating and a price target of $40.00.

The analyst comments "We see HWM attractively positioned to benefit from an aerospace recovery in year 1 of what will likely be a 5-10yr upcycle (if history is any guide). Howmet’s forgings and castings have been and will be in the critical path of the aerospace recovery with the company poised to take advantage of an unparalleled moat in their product offerings. We expect some bumps in the near term, particularly on widebodies, but believe that has been priced in with only the release of the news (i.e. 2-3/mo on the 787 though 2022) standing in the way of traction for the stock. Our $40 price target implies 25% potential upside, which drives our Buy rating and is supported by strong upcoming sales growth and above peer margins and attractive valuation."

For an analyst ratings summary and ratings history on Howmet Aerospace Inc. click here. For more ratings news on Howmet Aerospace Inc. click here.

Shares of Howmet Aerospace Inc. closed at $31.53 yesterday.

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