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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Tuesday November 16, 2021, 18:48:11

Allegheny Technology (ATI): Time To Focus On Aerospace Demand Visibility and New Catalysts

By Chris D. Olin

There is an interesting set up for Allegheny Technologies (ATI) heading toward CY22 as the company exited from the 3Q21 earnings period relatively unscathed by raw material/labor constraints and the commercial aircraft production hiccups. After updating our commercial aerospace demand assumptions and reviewing notes from the conference call, we reiterate the Strong Buy investment rating on the shares and $30 target price. Continue reading

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