Carpenter Technology initiated with an Overweight at JPMorgan

JPMorgan analyst Bennett Moore initiated coverage of Carpenter Technology (CRS) with an Overweight rating and $220 price target The shares have rallied 155% year-tp-date on the back of strong demand, solid execution, and an attractive earnings outlook, but the company is well positioned to capture further upside, the analyst tells investors in a research note. The firm says Carpenter’s pricing power amid a “robust” order backlog, secular demand tailwinds for 80% of its end market exposure levered to its highest-margin products, significant barriers to entry “cementing its role as an indispensable supplier,” and improving cash generation are supportive of growing shareholder returns.