UPDATE: Wolfe Research Starts Howmet Aerospace Inc. (HWM) at Outperform

Wolfe Research analyst Timna Tanners initiates coverage on Howmet Aerospace Inc. (NYSE: HWM) with a Outperform rating and a price target of $38.00.

The analyst comments "We initiate coverage of Howmet Aerospace (HWM) with an Outperform rating and $38/shr price target, in the context of a Market Overweight stance on specialty/downstream metals. Shares substantially lagged the broader S&P ytd, up just ~12% vs ~25%, as aero end mkts dipped in 2021 y/y and face an uncertain recovery. However, we identify positive catalysts from expected robust margin recovery in 2022E/2023E from initial aero recovery. We also think a proven track record can support a multiple expansion as HWM’s recent spinout appears unproven to investors. Yet its EBITDA margins above that of peers and strong FCF should deserve a premium multiple, in our view."

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 $33.05 yesterday.

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