- Barring a major global economic reversal, Carpenter has seen the bottom for this down-cycle, and demand is already rebounding across most of its end-markets.
- Carpenter recently hiked prices on its specialty alloys and is fielding more inquires from aerospace customers, while industrial/consumer demand is already back to pre-pandemic levels.
- Aerospace should offer a multiyear upcycle, with aftermarket demand improving in 2022 and new-builds in 2024, while specialty metals for EVs, sensors, and 3D printing offer some longer-term upside.
- Carpenter is a poor long-term buy-and-hold candidate, but the shares look undervalued as a play on long-cycle aerospace demand and other shorter-cycle end-market recoveries.
For further details see:
Carpenter Has Seen Its Bottom And Is Starting The Bounce