Howmet Aerospace ( NYSE: HWM ) on Friday was upgraded to Buy from Neutral with a $40 price target at Benchmark, citing a supply chain recovery and market share gains as companies divest their titanium operations in Russia.
As the Russia-Ukraine war drags on, leading aerospace original equipment manufacturers to move away from Russian titanium producer VSMPO-AVISMA, Benchmark analyst Josh Sullivan believes Howmet ( HWM ) can benefit over time as the company is capable of producing 80% of VSMPO's products.
Howmet ( HWM ) earnings are "driven by an engaging long-cycle recovery that we believe is underappreciated at these levels," Sullivan writes.
Seeing Howmet ( HWM ) as a "unique" part of the aerospace supply chain "that should be in position to benefit from increasing aircraft production rates, share gains in the titanium aerospace market [and] an easing supply chain in the transportation market," Truist analysts recently initiated coverage with a Buy rating .
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Howmet Aerospace raised to Buy at Benchmark on 'underappreciated' durability