Friday December 3, 2021, 11:17:19

Aero Suppliers: Investors Not Ready To LEAP To The MAX Following Release Of Positive Headlines?

By Chris D. Olin

We are surprised by the subdued response to the major aerospace industry headlines that were issued yesterday, including the long-awaited recertification of the 737 MAX for Chinese airspace and the formal issuance of strong LEAP jet engine production guidance. Both items should be considered bullish data points for the specialty materials and upstream aero supply peer groups, and the main drivers behind accelerated top-line growth and strong earnings contribution over the next 2-3 years. Continue reading

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Monday November 29, 2021, 12:35:13

Haynes International (HAYN): Strong FY4Q Results Confirm Early Corporate Strategy Benefits

By Chris D. Olin

The FY4Q beat, favorable top-line and earnings guidance, and general commentary offered by the Haynes International (HAYN) management team during the recent investor call reaffirms our bullish view on the shares. We believe the portfolio is uniquely positioned to capture strong earnings growth over the next two years, driven by underlying end-market demand strength, enhanced market positioning, a much lower mill operating cost position, and limited premium melt supply. Today, we raised our earnings estimates which ultimately led to a revised twelve-month target price of $49/share (up from $45). Continue reading

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Friday November 19, 2021, 05:39:19

Aerospace: Updating Our Macro Assumptions Ahead Of New Industry Catalysts

By Chris D. Olin

After taking a closer look at aerospace market drivers, listening to the commentary provided by OEMs and Tier-1 suppliers, and collecting early market intel from proprietary survey-work, we remain comfortable with the bullish outlook applied the coverage group. We anticipate the realization of accelerated aero-related sales growth in CY22 for companies levered to aluminum, composite materials, specialty materials, and forging services driven by unit volume strength, better pricing/mix, and distribution channel refill. In today’ s market update, We lowered the CY22 earnings outlook for Hexcel (HXL) to account lost 787 revenues in 1H22. Continue reading

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