Analyst Andre Madrid of BTIG maintained a Buy rating on Howmet Aerospace (HWM – Research Report), retaining the price target of $150.00.
Andre Madrid’s rating is based on Howmet Aerospace’s strategic response to potential tariff impacts. The company has declared a ‘force majeure,’ which allows it to renegotiate contracts with customers to maintain profitability despite the challenging global trade environment. This proactive approach suggests that Howmet is well-positioned to mitigate the effects of tariffs by passing on cost increases to customers, thereby limiting any negative impact on its financial performance.
Furthermore, although the aerospace industry may experience short-term disruptions due to tariffs, Howmet’s reliance on scrap and revert materials reduces its vulnerability. The company’s strategy to engage with customers for contract renegotiations could stabilize its profitability even if tariffs are enforced. This resilience and strategic foresight contribute to Andre Madrid’s confidence in recommending a Buy rating for Howmet Aerospace.
Madrid covers the Industrials sector, focusing on stocks such as AeroVironment, FTAI Aviation, and Carpenter Technology. According to TipRanks, Madrid has an average return of -13.9% and a 22.00% success rate on recommended stocks.