CRS's Future Looks Bright: Analyst Forecasts Steady Earnings Growth And Margin Improvements For FY27
Portfolio Pulse from Nabaparna Bhattacharya
Benchmark analyst Josh Sullivan reiterated a Buy rating on Carpenter Technology Corporation (CRS), raising the price target to $100 from $65. CRS is leveraging an attractive layer within the aerospace supply chain that offers broad cycle exposure but limited platform-specific risk. CRS's spring investor day highlighted a four-year 40%+ CAGR for operating income and 80% FCF conversion in FY27. With EBITDA margins working towards 20%, double-digit top-line growth, and steady, durable earnings growth ahead, CRS is beginning to re-rate from upper-teens P/E to low 20's.
September 13, 2023 | 7:23 pm
News sentiment analysis
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NEGATIVE IMPACT
The fragility of the aerospace supply chain is causing significant disruptions, as Boeing Company (BA) has recently experienced.
The disruptions in the aerospace supply chain could negatively impact BA's operations and potentially its stock price in the short term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
The fragility of the aerospace supply chain is causing significant disruptions, as Airbus SE (EADSY) has recently experienced.
The disruptions in the aerospace supply chain could negatively impact EADSY's operations and potentially its stock price in the short term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
The fragility of the aerospace supply chain is causing significant disruptions, as General Electric Company (GE) has recently experienced.
The disruptions in the aerospace supply chain could negatively impact GE's operations and potentially its stock price in the short term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
The fragility of the aerospace supply chain is causing significant disruptions, as RTX Corporation (RTX) has recently experienced.
The disruptions in the aerospace supply chain could negatively impact RTX's operations and potentially its stock price in the short term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
The fragility of the aerospace supply chain is causing significant disruptions, as Spirit Aerosystems Holdings, Inc. (SPR) has recently experienced.
The disruptions in the aerospace supply chain could negatively impact SPR's operations and potentially its stock price in the short term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Benchmark analyst Josh Sullivan reiterated a Buy rating on Carpenter Technology Corporation (CRS), raising the price target to $100 from $65. CRS's spring investor day highlighted a four-year 40%+ CAGR for operating income and 80% FCF conversion in FY27.
The analyst's positive outlook on CRS, along with the raised price target, indicates a strong potential for stock price growth. The company's position in the aerospace supply chain and its financial projections further support this outlook.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100