Howmet Aerospace shares face pressure from SpaceX's internal manufacturing plans, but analysts maintain a bullish outlook, citing strong growth and persistent demand for turbine components.
Howmet Aerospace stock has retreated 11% since mid-August following SpaceX's announcement to bring some gas-turbine component manufacturing in-house. Despite market jitters, analysts from Citi and Bernstein argue the move highlights industry-wide supply scarcity rather than a competitive threat to Howmet. With 20 of 23 analysts maintaining buy ratings, experts view the recent pullback as a potential buying opportunity.
The stock fell after SpaceX announced plans to manufacture gas-turbine components internally to accelerate its own power installation projects, sparking fears of lost market share for Howmet.
The consensus remains bullish, with 20 of 23 analysts holding 'Buy' ratings and a mean price target suggesting a potential 27% upside from current levels.