Bennett Moore, an analyst from J.P. Morgan, maintained the Buy rating on Carpenter Technology (CRS – Research Report). The associated price target remains the same with $240.00.
Bennett Moore has given his Buy rating due to a combination of factors that highlight Carpenter Technology’s strong market position and future growth potential. The company benefits from a robust order backlog that is more than four times the pre-COVID levels, which supports its pricing power and positions it well in the market. This backlog, combined with secular demand trends for its high-margin products, provides a solid foundation for future revenue and operating income growth.
Carpenter Technology’s strategic focus on productivity, pricing, and product mix has demonstrated success, leading to improved cash generation that can fund shareholder returns. The company’s significant barriers to entry further cement its role as an indispensable supplier, enhancing its competitive advantage. Additionally, Carpenter’s management is noted for setting conservative and realistic goals, which instills confidence in their ability to achieve projected growth. These factors, along with a justified premium valuation multiple, underpin Moore’s positive outlook and Buy rating for Carpenter Technology.
In another report released on April 10, TD Cowen also maintained a Buy rating on the stock with a $200.00 price target.
Based on the recent corporate insider activity of 54 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CRS in relation to earlier this year.