Curtiss-Wright shares target upped by Baird, strong Q2 results boost growth outlook
On Friday, Baird raised the price target for Curtiss-Wright (NYSE:) shares to $312 from $300, while retaining an Outperform rating on the stock.
The adjustment follows Curtiss-Wright’s announcement of robust second-quarter 2024 results, which surpassed consensus expectations. The company also increased its top-line and earnings per share (EPS) guidance for the year.
Curtiss-Wright reported mid-teens growth across its Aerospace and Defense (A&D) markets and high single-digit (HSD) growth in its commercial nuclear segment.
The company’s Defense Electronics margins notably outperformed market expectations by approximately 300 basis points in the second quarter of 2024. This strong performance was supported by growth in the commercial nuclear sector, which is projected to double by the year 2028.
The company’s 2024 guidance includes limited margin expansion ranging from 0 to 20 basis points. This forecast incorporates 40 to 50 basis points of margin headwinds linked to investment in research and development (IR&D) for future high-growth opportunities.
According to Baird, these investments in IR&D are expected to position Curtiss-Wright favorably against its peers over a multi-year investment horizon.
The analyst’s statement highlighted Curtiss-Wright’s potential for significant upside compared to its peers, considering the long-term growth prospects. The company’s strategic investments and strong performance in key sectors are anticipated to drive its future success.
InvestingPro Insights
Following Baird’s optimistic outlook on Curtiss-Wright (NYSE:CW), InvestingPro data further underscores the company’s strong financial position. With a market capitalization of $10.98 billion and a solid revenue growth of 10.45% over the last twelve months as of Q2 2024, Curtiss-Wright is showing promising vitality in its financials. Additionally, the company’s gross profit margin stands at an impressive 37.37%, reflecting its ability to maintain profitability amidst competitive market pressures.
Two crucial InvestingPro Tips highlight aspects of the company’s financial health that investors may find appealing. Curtiss-Wright has maintained dividend payments for 51 consecutive years, indicating a reliable return to shareholders. Furthermore, the company has managed to keep a moderate level of debt, which suggests prudent financial management and a lower risk profile for investors. It’s worth noting that there are more InvestingPro Tips available, providing deeper insights into Curtiss-Wright’s financial metrics and performance trends.
These financial metrics and strategic insights from InvestingPro offer a well-rounded view of Curtiss-Wright’s current market position and future potential, complementing the positive analysis provided by Baird. Investors looking for a more comprehensive understanding of the company’s performance can explore additional tips on the InvestingPro platform.
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