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Curtiss-Wright growth outlook lead Truist to raise shares target

EditorEmilio Ghigini
Published 2024-05-22, 07:32 a/m
CW
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On Wednesday, Truist Securities revised the price target for Curtiss-Wright (NYSE:CW) shares, raising it to $270 from the previous $252 while maintaining a Buy rating. The adjustment reflects the company's new financial goals as presented during Curtiss-Wright's Investor Day.

The firm's analyst noted that the updated price target comes in response to the company's recently announced 2026 financial targets.

Despite reaffirming its guidance for 2024, Curtiss-Wright has set ambitious goals for 2026, which include an organic revenue compound annual growth rate (CAGR) of over 5%, operating margin expansion that could reach approximately 19%, an earnings per share (EPS) CAGR of over 10%, and free cash flow (FCF) conversion exceeding 105%.

According to the analyst, different market segments will grow at varying rates. General industrial markets are expected to see slower growth at a low single-digit rate, while commercial nuclear is projected to expand at a low double-digit rate. It was also mentioned that all fiscal year 2026 targets do not take into account potential revenue from AP1000 projects.

The analyst highlighted that mergers and acquisitions (M&A) and research and development (R&D) investments continue to be a priority for Curtiss-Wright.

Specific growth areas identified include the nuclear aftermarket, subsea pumps for the oil and gas industry, and initiatives in defense electronics. These sectors were singled out as key drivers for the company's growth.

InvestingPro Insights

Recent data from InvestingPro underscores Curtiss-Wright's (NYSE:CW) solid financial performance and market position. With a Market Cap of $10.92B and a P/E Ratio of 29.07, the company's valuation reflects its growth potential and investor confidence. The company's Revenue Growth over the last twelve months as of Q1 2024 stands at an impressive 11.39%, signaling robust business operations.

InvestingPro Tips highlight that Curtiss-Wright has maintained dividend payments for an astounding 51 consecutive years, showcasing its commitment to returning value to shareholders. Additionally, the company has raised its dividend for 7 consecutive years, further cementing its reputation as a reliable dividend-paying stock.

Investors should note that while the stock is trading near its 52-week high and has shown a high return over the last year with a 73.78% increase, some analysts have revised their earnings downwards for the upcoming period. This suggests that while the company's recent financial targets are ambitious, market participants may have reservations about future earnings potential.

For those interested in a deeper dive into Curtiss-Wright's financials and strategic outlook, InvestingPro offers additional insights and metrics. By using the promo code PRONEWS24, readers can get an extra 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking further value from their investment research. There are 19 additional InvestingPro Tips available for Curtiss-Wright, which can be accessed for further analysis and investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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