-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We raise our target price by $114 to $501, based on an EV/EBITDA of 19.0x our FY 28 (Jun.) EBITDA estimate, above CRS's TTM avg. fwd EV/EBITDA of 18.2x but a discount to peers' avg. fwd EV/EBITDA of 21.6x. We lift our FY 26 EPS estimate by $0.11 to $10.57 and FY 27 by $0.46 to $13.22. We initiate our FY 28 EPS forecast at $16.52. With only three qualified global suppliers of premium nickel-based superalloys, CRS enjoys exceptional pricing power, evidenced by recent long-term agreements with 30%+ price increases. The company delivered its 16th consecutive quarter of margin expansion in Q2 FY 26, with SAO margins at a record 33.1%. Management's raised FY 26 operating income guidance of $680M-$700M represents 30%-33% growth over record FY 25, while the FY 27 target of $765M-$800M remains intact, with management signaling focus on exceeding these levels. The $400M brownfield expansion adds only modest capacity relative to surging aerospace build rates targeting 2,100+ aircraft annually, 30% above pre-Covid peaks.