Sheila Kahyaoglu, an analyst from Jefferies, maintained the Buy rating on Howmet Aerospace (HWM – Research Report). The associated price target was raised to $150.00.
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Sheila Kahyaoglu’s rating is based on several optimistic projections for Howmet Aerospace’s future performance. The company is anticipated to benefit from improved OEM rates and an increase in EP margins due to the transition to next-generation products, which is expected to boost the overall profitability. Additionally, Howmet’s structures segment is maintaining strong margins, and the company has an effective share repurchase program in place, further enhancing shareholder value.
Furthermore, Kahyaoglu notes that Howmet’s financial outlook for 2025 and beyond seems promising with the potential for increased earnings per share. This positive trajectory is supported by operational leverage and productivity enhancements. Despite conservative management guidance, there are significant opportunities for earnings growth, particularly if OEM production rates reach targeted levels. The company is also set to achieve substantial free cash flow, even with ongoing capital expenditures, indicating robust financial health.
According to TipRanks, Kahyaoglu is a 5-star analyst with an average return of 12.0% and a 61.41% success rate. Kahyaoglu covers the Industrials sector, focusing on stocks such as Boeing, GE Aerospace, and FTAI Aviation.
In another report released today, Barclays also maintained a Buy rating on the stock with a $140.00 price target.