EADSY - Howmet Aerospace rated Outperform in new coverage at Baird
2023-07-25 14:06:21 ET
Howmet Aerospace ( NYSE: HWM ) on Monday was rated Outperform in new research coverage by analysts at financial-services firm Baird. They said the maker of airplane parts and aluminum truck wheels is poised for growth amid strong demand for air travel.
“Howmet ( HWM ) holds various top supplier positions across the entire Boeing ( BA ) and Airbus ( OTCPK:EADSY ) ( OTCPK:EADSF ) aircraft line-up, with high-single-digit top-line growth intact through 2025+, driven by ramping original equipment manufacturer production with EBITDA margins approaching 25%,” Peter J. Arment, analyst at Baird, said in a July 24 report.
Baird has a price target of $61 a share on Howmet ( HWM ), based on a multiple of 16 times estimated EBITDA for 2025.
“Peers have historically traded in the 14 times-18 times range, but Howmet’s ( HWM ) stable top-line and free-cash-flow generation warrant a premium valuation given the robust performance during economic downturns, with free-cash-flow conversion of 90%-plus throughout 2020-2022,” according to Baird.
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Howmet Aerospace rated Outperform in new coverage at Baird