ARNC - Arconic: A Clear Path Towards Value Crystallization
I would own Arconic (ARNC) heading into the upcoming split. There is a compelling fundamental-driven story here as growth prospects appear encouraging on new capacity additions and aero end-market growth, while improved cost discipline should drive additional EBITDA upside toward a ~$2.7 bn FY22 target. While the bears might argue against the stock on decreased visibility and confidence in the outlook relative to peers, I believe this is more than adequately reflected in the discounted multiple. Further, the upcoming split serves as a value unlocking catalyst as the more volatile rolled-products business is