Howmet Aerospace stock price target raised to $210 from $200 at RBC Capital

RBC Capital raised its price target for Howmet Aerospace (HWM) to $210 from $200, maintaining an Outperform rating, citing growing confidence that Engine Products de-stocking challenges will conclude by the second half of 2025 and projecting strong revenue growth for 2026-2027. This follows Howmet's robust Q2 2025 earnings, which surpassed analyst expectations with adjusted EPS of $0.91 and revenue of $2.53 billion, prompting Bernstein to also increase its price target to $217. The company's strong financial performance and positive long-term outlook, despite near-term inventory adjustments, are further underscored by a declared $0.12 quarterly dividend.

Analysis

Howmet Aerospace (HWM) reported robust Q2 2025 earnings, significantly surpassing analyst expectations with adjusted diluted EPS of $0.91 against a forecast of $0.87, and revenue reaching $2.53 billion, well above the anticipated $2.02 billion. This strong financial performance has contributed to an impressive 75.62% year-to-date return for the stock.

Following these results, RBC Capital raised its price target for HWM to $210 from $200, maintaining an Outperform rating, while Bernstein also increased its target to $217 from $174, citing the company's strong margins. Both firms underscore a positive long-term outlook, with RBC projecting revenue growth of approximately 11% in 2026 and 10% in 2027.

Despite facing near-term commercial original equipment de-stocking challenges, particularly in its Engine Products and Engineered Structures segments, RBC Capital expresses growing confidence that the Engine Products de-stocking phase will conclude in the second half of 2025. The company's declaration of a $0.12 quarterly dividend further signals financial health and commitment to shareholder returns.

Key Decisions for Investors

• Given the strong Q2 2025 earnings beat and positive analyst revisions, investors should evaluate Howmet Aerospace's continued operational strength and long-term growth trajectory.
• Monitor the progress of de-stocking challenges in the Engine Products and Engineered Structures segments, particularly the anticipated resolution in H2 2025, as this could alleviate near-term headwinds.
• Consider the implications of the new quarterly dividend and sustained revenue growth projections for 2026-2027, which reinforce the company's positive fundamental outlook and potential for capital appreciation.