Key Stats for Howmet Aerospace Stock
- Past-5-Day Performance: 17%
- 52-Week Range: $105 to $234
- Valuation Model Target Price: $255
- Implied Upside: 10%
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What Happened?
Howmet Aerospace stock rose about 17% over the past 5 days, finishing near $231 per share as investors reacted to strengthening aerospace production momentum and fresh institutional positioning disclosures.
Shares traded as high as $234 during the period, just shy of their 52-week high, signaling strong demand rather than a short-lived move.
The stock moved higher as investors priced in accelerating commercial aerospace production, particularly higher engine build rates and aircraft output that directly benefit Howmet’s fastener and engine component businesses.
Improving demand visibility and expanding margins across long-cycle aerospace programs reinforced confidence in steady revenue growth and operating leverage.
Recent SEC filings reinforced that constructive backdrop. Stratos Wealth Partners LTD increased its stake by 20.3%, buying 25,957 shares to hold 153,889 shares worth about $30.2 million.
BI Asset Management Fondsmaeglerselskab A S raised its position by 28.3% to 94,656 shares valued at about $18.57 million, while Navellier & Associates increased its stake by 9.6% to 78,174 shares, making Howmet its 10th-largest holding at about $15.34 million.
Prime Capital Investment Advisors LLC boosted its stake by 7.8% to 68,019 shares worth about $13.35 million.
At the same time, some firms trimmed exposure. Oppenheimer Asset Management reduced its stake by 32.4% to 41,470 shares worth $8.14 million, Hantz Financial Services cut its position by 25.4% to 18,630 shares worth $3.656 million, and Bessemer Group Inc. reduced its holdings by 7.4% to 2,267,648 shares valued at about $445 million.
Institutional investors now own roughly 90.46% of the stock, underscoring that despite selective trimming, Howmet remains heavily institutionally backed as shares surged over the past 5 days.
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Is Howmet Aerospace Undervalued?
Under valuation assumptions, the stock is modeled using:
- Revenue Growth (CAGR): 10.8%
- Operating Margins: 27.4%
- Exit P/E Multiple: 43x
Revenue growth assumptions reflect sustained aircraft production ramp schedules across both narrowbody and widebody programs, alongside strong commercial engine demand.
Estimated revenue rises from $8,206.88 million in 2025 to $10,101.44 million in 2027, supporting roughly 11% annual growth, consistent with the 10.8% CAGR used in the model.
Analyst estimates increasingly reflect a mix shift toward higher-margin engine components and aftermarket exposure rather than purely volume-driven growth.
As global flight hours rise and engine shop visits increase, recurring replacement part demand strengthens earnings durability and supports incremental margin expansion.
This supports the view that future returns depend more on operating leverage, backlog conversion, pricing discipline, and favorable product mix than on aggressive multiple expansion.
Based on these inputs, the model estimates a target price of $255, implying about 10% total upside over roughly 1.9 years, indicating the stock appears undervalued at current prices near $231.
Results over the next year hinge on aircraft production accelerating toward OEM targets, continued strength in engine aftermarket demand, and further productivity improvements across forging and casting operations.
Improved capacity utilization and disciplined capital allocation could push margins above the current 24.6% LTM EBIT level toward the modeled 27.4%.
At current levels, Howmet Aerospace appears undervalued under your framework, with forward performance driven primarily by aircraft build rates, aftermarket durability, and sustained margin expansion rather than speculative valuation expansion.
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