On Monday, Benchmark analyst team increased the price target for Howmet Aerospace Inc. (NYSE: HWM (BMV:HWM)) shares to $165, up from the previous target of $135, while maintaining a "Buy" rating on the stock. According to InvestingPro data, the stock has surged 96% over the past year and is currently trading near its 52-week high of $154.73. The adjustment follows Howmet Aerospace’s strong first-quarter performance in 2025 and the company’s updated guidance for the fiscal year.
The company’s notable first-quarter achievements included a record cash flow and the repurchase of $125 million worth of its stock. With a perfect Piotroski Score of 9 and a healthy current ratio of 2.3, InvestingPro analysis indicates robust financial health. The analysts highlighted Howmet Aerospace’s conservative approach to forecasting the ramp-up times for aerospace original equipment manufacturers (OEMs) within its guidance, which may offer additional upside should Boeing (NYSE:BA) and Airbus reach their announced production rates.
Howmet Aerospace’s positive outlook on Boeing’s build rates for the 737-MAX was also a factor, with the company increasing its production assumptions from 25 to 28 per month, remaining cautious compared to Boeing’s target of 38 per month. The analysts pointed out that Howmet Aerospace’s exposure to aftermarket spares remains strong, and inventory reductions for non-consumable components are aligned with the company’s guidance.
The report further emphasized the impressive margin profile of Howmet Aerospace’s Fastener segment, which is considered baseline-related, as opposed to the smaller, though beneficial, share gains from the SPS fire. The analysts concluded that Howmet Aerospace represents a "haven of safety" in volatile markets, offering upside potential and a guidance that reflects the realities of fragile OEM builds. With a strong return on invested capital of 17% and 14 analysts revising earnings upward, the company’s fundamentals appear solid. Moreover, the company’s increasing cash generation is likely to continue supporting stock buybacks. For deeper insights into Howmet Aerospace’s valuation and growth prospects, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Howmet Aerospace Inc. reported strong first-quarter 2025 earnings, surpassing expectations with an adjusted diluted earnings per share (EPS) of $0.86, compared to the consensus estimate of $0.77. The company’s revenue for the quarter was $1.69 billion, marking a 6% increase from the previous year and matching forecasts. Howmet also achieved a record EBITDA of $486 million, reflecting a 28% year-over-year growth. Following these results, Bernstein analysts raised their price target for Howmet Aerospace from $154.00 to $174.00, maintaining an Outperform rating. The company has also revised its financial guidance upwards for 2025, projecting increased adjusted EBITDA, EPS, and free cash flow. Howmet anticipates its second-quarter 2025 revenue to reach $1.99 billion, with EBITDA projected at $560 million. For the full year, the company expects revenue of $8.03 billion and EBITDA of $2.25 billion. The company continues to focus on expanding its manufacturing capabilities and investing in fuel-efficient technologies.
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