UPDATE: Benchmark Upgrades Howmet Aerospace Inc. (HWM) to Buy

Benchmark analyst Josh Sullivan upgraded Howmet Aerospace Inc. (NYSE: HWM) from Neutral to Buy, PT $40.00.

The analyst comments "We are upgrading HWM to Buy from Neutral as we see 1) long-cycle aerospace supply chain recovery providing near-term durability 2) sum-of-parts, and historically active investor base protecting downside 3) Aerospace OEM’s moving forward with Russian titanium divestitures leading to HWM share gains 4) pricing and structural gains during COVID supporting new margin profile. While there are broader recession concerns, we see HWM as a “baby out with the bath water” candidate given earnings will reflect the uptick in long-term production needs from OEM customers. For Boeing and Airbus to increase aircraft production in 23’/24’ HWM’s long-lead forging and casting capabilities are ramping now. Net, net HWM earnings are driven by an engaging long-cycle recovery that we believe is underappreciated at these levels. Our new $40 PT is based on 13.2x our FY23 EV/EBITDA estimate."

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 $32.55 yesterday.

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