Baird starts Howmet Aerospace at Outperform on top supplier positions

Baird analyst Peter Arment last night initiated coverage of Howmet Aerospace (HWM) with an Outperform rating and $61 price target. The company holds various top supplier positions across the entire Boeing (BA) and Airbus (EADSY) aircraft line-up, with high-single-digit sales line growth intact through 2025, the analyst tells investors in a research note. The firm says Howmet’s strong free cash flow conversion remains intact beyond mid-decade on higher narrow-body production and a wide-body recovery, while its proprietary technology capabilities within Forged Wheels provide further commercial growth opportunities. Baird says “stay long” and add to the stock on pullbacks.