BTIG lowered its price target for Howmet Aerospace to $280 from $340 but maintained a Buy rating. The firm said the company’s third-quarter 2026 results and revised outlook support its prospects across commercial aerospace, defense and industrial gas turbines, while adjusting its valuation assumptions to reflect a broader sector multiple reset.
Howmet management brought forward its expectation for industrial gas turbine sales to double to about $2 billion by 2028 and said sales could reach approximately $2.5 billion by 2030. The company also expects volume growth across all major commercial aircraft platforms. Defense demand for missiles represents additional potential, though BTIG said it is not yet fully reflected in the outlook.
The company’s initial outlook for 2027 calls for revenue growth of about 12%. Howmet also said its capacity is sold out as it comes online, supported by additional customer demand.
BTIG changed the valuation basis for its target, applying a multiple of 30 times its 2027 EBITDA estimate, down from 40 times next-twelve-month EBITDA. The source reported that Howmet shares had fallen roughly 11% over the previous six months. Wall Street analysts had a Strong Buy consensus, with price targets ranging from $230 to $375.
Howmet recently reported adjusted third-quarter 2026 earnings of $1.46 per share on revenue of $2.7 billion, exceeding Wall Street estimates, and raised its full-year outlook. Jefferies also cut its price target, to $350 from $370, while retaining a Buy rating.
Sources: Investing.com News.