TD Cowen analyst Gautam Khanna maintained a Buy rating on Howmet Aerospace today and set a price target of $240.00.
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Gautam Khanna has given his Buy rating due to a combination of factors that highlight Howmet Aerospace’s promising outlook. The company has exceeded expectations with its Q3 results and has provided an initial sales forecast for 2026 that aligns with market consensus, albeit with a potential for upward revision. This is attributed to conservative assumptions regarding aerospace original equipment production, which could lead to better-than-anticipated performance.
Additionally, Howmet Aerospace’s strategic investments in new capital expenditures and labor productivity improvements are expected to yield high incremental margins, particularly in their Engine Products, Fastening, and Structures segments. Despite the company’s cautious approach to margin guidance, the potential for upside exists, especially with the anticipated end of aerospace de-stocking by the end of Q4. These factors, combined with strong pricing and cost actions, underpin Khanna’s positive outlook on the stock.
In another report released on October 22, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $225.00 price target.