Carpenter Technology initiated with a Buy at Deutsche Bank

Deutsche Bank analyst Scott Deuschle initiated coverage of Carpenter Technology with a Buy rating and $144 price target, which represents 47% upside potential. Carpenter offers early cycle commercial end market exposure with the pricing power of a commercial aftermarket supplier, the analyst tells investors in a research note. The firm says the supply/demand imbalance creates the ability to extract net price, which, when combined with inflationary pass-through mechanisms and an otherwise high fixed cost base, translates into a “powerful bottom-line growth trajectory” for the company that the consensus “continues to under-appreciate.”