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S&P 500$4399.32+4.06+0.09%

IO$211.99-1.53-0.72%

NI$19455-107.5-0.55%

HRC$188800%

SS$484.84-0.16-0.03%

CB$5242600%

AL$2614+16.25+0.63%

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Welcome To Tier4 Research:

Daily Trade - Winners/Losers:

Top Aerospace Movers - Trading Higher:

  • ge$102.21+89.26+689.27%
  • mggt£735+265.9+56.68%
  • snr£177+15+9.26%
  • spce$32.31+2.32+7.74%
  • erj$15.06+0.76+5.31%

 
Top Aerospace Movers - Trading Lower:

  • alk$57.57-0.46-0.79%
  • ph$309.03-3-0.96%
  • trs$32.32-0.4-1.22%
  • lat€0.6-0.01-1.64%
  • vsec$49-1.05-2.1%

 
Top Metal Movers - Trading Higher:

  • jcq€20.75+0.6+2.98%
  • vale$21.55+0.53+2.52%
  • lb$636.7+14.5+2.33%
  • rio£6216+115+1.88%
  • pke$15.1+0.2+1.34%

 
Top Metal Movers - Trading Lower:

  • wor$62.15-1.82-2.85%
  • zeus$29.25-0.87-2.89%
  • clf$24.24-0.76-3.04%
  • cl$71.17-2.55-3.46%
  • x$25.38-1.1-4.15%

 

Individual Company Coverage:

The Boeing Company (BA)

General Electric (GE)

Hexcel Corporation (HXL)

Howmet Aerospace (HWM) 

Allegheny Technologies (ATI)

Carpenter Technology (CRS)

Haynes International (HAYN)

Research Tags:

 
737 MAX 777X Aircraft 787 Dreamliner A320neo Airbus Production Airlines Boeing Production Buzzing The Tower Commodity Nickel COVID-19 Downward Estimate Revision FAA Updates Initiation Report Jet Engine Demand LEAP Engine Nickel-Based Alloys Stainless Steel Titanium Top Pick Upward Estimate Revision

In The nEWS:
Buzzing The Tower
Chris D. Olin

Buzzing The Tower: Mid-July Review

Tower… Requesting permission to release Buzzing The Tower… Yikes! Trading days like yesterday are the reason Jester decided to retire early and begin his new career as a bounty hunter and the eventual antagonist to Douglass Quaid while he was on a Mars vacation. But we digress… Investors seem to be reacting to heightened concerns about an economic slowdown, trade tensions, and COVID-19 outbreaks, but we see opportunity. Given the renewed upstream aero channel strength, identification of potential catalysts, and survey data points, we would be inclined to start positions at these lower price points, focusing on companies tied to jet engine market, premium alloys, or stainless steel production (areas of survey strength). The top-of-mind names include General Electric (GE), Carpenter Tech (CRS) and Haynes International (HAYN). Normally, we would blame an intern for another late release of the bi-monthly review, but this one is on Quato. The little guy insisted on jumping in one of our backpacks so he could wait in-line with us for Top Gun 2 movie tickets Continue reading

Chris D. Olin July 20, 2021 5:45 AM
Coverage Universe
Chris D. Olin

Specialty Materials: Highlights From Quarterly Channel Checks

Despite recent negative headlines regarding a disruption in 787 aircraft production, we are sticking with a bullish thesis on the specialty materials group following a review of better-than-expected quarterly survey results. Communications with industry contacts confirmed much stronger demand/pricing trends in 2Q21, improving channel sentiment and upward forecast revisions, approaching catalysts, and more manageable inventory situations. Key data points collected over the past few months suggest there is an upward bias to consensus forecasts (looking out 3-4 quarters), with emphasis placed on companies levered to jet engine OEM demand and the premium alloy product categories (nickel-based alloys, cobalt-alloys, and specialty stainless steel). Continue reading

Chris D. Olin July 16, 2021 5:06 AM
Allegheny Technologies (ATI)
Chris D. Olin

Allegheny Technologies (ATI): Raising Estimates On Projected Aerospace Demand Strength; New LEAP Outlook

We are increasing Allegheny Technologies (ATI) estimates to account for an increasingly favorable commercial aerospace sales outlook, better-than-expected specialty materials survey results and upward movement in product pricing. After adjusting for the new production schedules shared by jet engine manufacturers and rising single-aisle aircraft build rate assumptions, the company appears to be on-track to generate $1.05-1.10/share of earnings by CY23 on stronger mill volumes and favorable premium forge sales contribution. Continue reading

Chris D. Olin July 13, 2021 8:49 AM
Carpenter Technology (CRS)
Chris D. Olin

Carpenter Technology (CRS): Initiating Coverage With A Strong Buy; This Is Our New Top Pick

We are initiating coverage on Carpenter Technology (CRS) with a Strong Buy investment rating and $50/share target price. Following a short period of trading weakness, we are comfortable with the lower entry point. The shares look undervalued today, especially after the consideration of better-than-expected survey results and backdrop of macroeconomic strength, rebounding channel sentiment, commodity nickel price inflation and enhanced commercial aero demand visibility. Market intelligence suggests the specialty materials group is at or near a summer inflection point which should be followed by a multi-year period of above-average top-line growth. Continue reading

Chris D. Olin July 6, 2021 11:47 AM
Buzzing The Tower
Chris D. Olin

Buzzing The Tower: Late-June Update

Tower… Requesting permission to release Buzzing The Tower – A high-speed flyby fully armed with research note summaries, a sampling of interesting quotes collected from the channel, and industry headlines that can be enjoyed with a morning coffee. Continue reading

Chris D. Olin June 28, 2021 11:43 AM
Coverage Universe
Chris D. Olin

The Boeing Company (BA): Expect A Bumpy Path To Earnings Recovery; Lowering Estimates

We are lowering estimates on The Boeing Company (BA) to account for the approaching commercial aircraft segment shortfall. We expect total deliveries to fall about twenty jets below 2Q21 forecasts as another FAA inquiry has resulted in a 787-customer shipment halt, which translates into roughly $0.50/share of near-term earnings dilution in our model. Presumably, consensus expectations will reset following the company issuance of another disappointing monthly aircraft delivery report in early July. Continue reading

Chris D. Olin June 23, 2021 7:32 AM
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