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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Thursday September 16, 2021, 05:40:30

Titanium: Lowering Group Estimates On Disappointing Survey Results And Near-Term Aero Destabilization

By Chris D. Olin

Highlighting mixed-to-negative titanium survey reads and macro headlines over the past few weeks. At this point, our market intelligence and analysis indicate a slight downward bias to near-term earnings expectations for companies levered to titanium and other specialty alloys. Continue reading

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