Howmet Aerospace initiated with a Positive at Susquehanna

Susquehanna initiated coverage of Howmet Aerospace (HWM) with a Positive rating and $120 price target. With a leading market position across engine products and highly engineered structures for aircraft within both Commercial Aerospace and Defense, Howmet is “uniquely well-positioned to capitalize on the compelling fundamental backdrop” across both industries, the analyst tells investors. Howmet can produce about 90% of all rotating and structural engine components on an aircraft, notes the firm, which believes rising narrowbody and widebody aircraft production rates at Airbus (EADSY) and Boeing (BA), capacity expansion initiatives, and “robust” aftermarket demand all support an attractive revenue growth, margin, and free cash flow story.