Howmet Aerospace Gains as Analysts Call SpaceX-Related Dip a Buying Opportunity

Howmet Aerospace Inc. (NYSE: HWM) shares climbed 3.3% on Tuesday as Wall Street analysts dismissed recent stock weakness as a buying opportunity, arguing that the market has overreacted to competitive concerns from SpaceX.

Analysts Downplay SpaceX Threat

The commentary follows an announcement from SpaceX that it plans to manufacture its own blades and vanes for industrial gas turbines. The move is part of a plan to install 20GW of power capacity for its terrestrial AI data centers in Texas by the end of 2027.

According to Bernstein SocGen Group analyst Douglas Harned, this development is more about vertical integration for SpaceX's internal needs rather than an attempt to become a broad industry supplier. "We would not expect the company to become a new industry supplier of forgings and castings, which would have little connection with core SpaceX objectives," Harned stated in a note. He maintained an Outperform rating and a $328.00 price target on Howmet's stock.

Ad

Execution Challenges and Market Position

Bernstein expressed skepticism that SpaceX could achieve volume production within its ambitious timeline, noting the manufacturing complexity that underpins Howmet's market leadership. "This is not easy, which is why Howmet has been able to maintain its lead position," Harned added, concluding that the stock's decline on the SpaceX news "should be a buying opportunity."

Separately, sentiment from Citi echoed this bullish view. Analyst John Godyn reiterated a Buy rating and a $329.00 price target on Howmet. Citi also initiated a 30-Day Upside catalyst watch on the stock, signaling an expectation for positive developments in the near term.