Magellan Aerospace Upgraded To Strong Buy On Aerospace Growth

2025-03-27 11:07:56 ET

Summary

• Magellan Aerospace's stock price surged 38% since my December buy rating, outperforming the S&P 500's 2.6% increase, prompting a price target upgrade.
• Despite limited program details, Magellan's exposure to key Boeing and Airbus programs and strong commercial and defense markets support its growth potential.
• Fourth quarter results showed significant margin expansion and profit growth, highlighting the company's resilience, despite challenges like the Boeing strike and trade risks.
• With EBITDA and free cash flow exceeding expectations, I upgrade Magellan Aerospace to a strong buy, anticipating continued margin expansion and top-line growth in 2024.

I covered Magellan Aerospace ( OTCPK:MALJF ) in December with a buy rating. The stock price has increased nearly 38% since then, compared to a 2.6% increase for the S&P 500. So, the performance has followed the path I projected for the buy rating. In this report, I will be discussing the most recent results and explain why I am increasing my price target....

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