Howmet Aerospace downgraded to Hold at Benchmark after FY23 guidance

As previously reported, Benchmark analyst Josh Sullivan downgraded Howmet Aerospace to Hold from Buy with no price target after the company took a conservative approach to FY23 guidance given a lack of confidence in visibility into aerospace original equipment makers’ build rates. While bulls will point to FY23 guidance as the floor, at current levels the stock is now trading at a historical high EV/EBITDA ratio, which indicates that the market is already looking through supply chain risks, the analyst tells investors. While the firm appreciates Howmet’s conservative approach and sees the case for incremental upside, it is moving to the sidelines given current trading levels.