Curtiss-Wright initiated with a Buy at Citi

Citi initiated coverage of Curtiss-Wright (CW) with a Buy rating and $410 price target The firm expects the Department of Defense’s spending trends and initiatives that prioritize Aircraft, Shipbuilding, and C4I spending to drive defense end-market revenues. Higher production rates for new aircraft are likely to increase Aerospace and Industrial aftermarket revenues while global demand for more efficient energy solutions suggests solid nuclear OE and aftermarket revenue visibility. Furthermore, Citi sees a path for the company to become net cash positive by 2026 given its consistent pattern of de-levering the balance sheet, which is supported by its outlook for 13% earnings growth through 2027 and consistent cash conversion.