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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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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