CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
Our 12-month target price of $42, raised $4, reflects a combination of relative valuation and DCF models. On a relative basis, we apply a 9.1x multiple of enterprise value to projected '27 EBITDA, above HAL's historical forward average. We think a premium multiple is reasonable in light of the war in the Middle East, given HAL's cornerstone positioning in North America. This approach yields a value of $39 per share. Meanwhile, our DCF model, using medium-term free cash flow growth of 5% and terminal growth of 2%, discounted at a WACC of 7.1%, yields intrinsic value of $45 per share. We lift our '26 EPS estimate by $0.09 to $2.37, and '27's by $0.13 to $2.65. HAL guided to a $0.07-$0.09 EPS headwind in '26 due to the situation in the Middle East, but we think Latin America will be strong and serve as a partial offset. Management sees early signs of a recovery in North America, although we think it is debatable whether this will be a slow or fast ramp-up.