Analyst Gautam Khanna from TD Cowen maintained a Buy rating on Howmet Aerospace (HWM – Research Report) and increased the price target to $160.00 from $145.00.
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Gautam Khanna has given his Buy rating due to a combination of factors that highlight Howmet Aerospace’s strong market position and financial performance. The company’s impressive Q1 incremental margin of 104% demonstrates its effective execution and pricing strategies, particularly in its Aero segments, which achieved record margins. Despite challenges in the Forged Wheels segment, Howmet has managed the situation well, adjusting its expectations for the second half of the year accordingly.
Additionally, Howmet’s decision to raise its 2025 EBITDA guidance by 6% reflects confidence in its margin improvement, while maintaining its sales guidance. The company’s strong demand for spares, which grew significantly year-over-year, further supports its positive outlook. Moreover, Howmet’s strategic stock buybacks and low leverage ratio of 1.4x net debt to LTM EBITDA indicate robust financial health, reinforcing Khanna’s Buy recommendation.
In another report released on April 21, Benchmark Co. also maintained a Buy rating on the stock with a $135.00 price target.