Curtiss-Wright: Morgan Stanley Raises Price Target to $395 Amid Strong Growth

Curtiss-Wright Corporation (NYSE: CW), a leading provider of engineered products, solutions, and services to the aerospace and defense, commercial power, process, and industrial markets, has seen its price target raised by Morgan Stanley to $395 from $334. This significant increase reflects the analyst's increased confidence in the company's growth prospects and fundamentals.


Morgan Stanley's bullish outlook on Curtiss-Wright is driven by several key factors. The company's robust financial performance, particularly in its Aerospace & Industrial and Defense Electronics segments, has exceeded analyst expectations. In Q2 2024, Curtiss-Wright reported a 15% revenue growth in aerospace and defense markets and a 17% increase in adjusted diluted EPS to $2.97. The company has also raised its full-year 2024 guidance for sales, EPS, and free cash flow, indicating strong operational momentum.


Moreover, Curtiss-Wright's strategic partnerships and expansion in the nuclear energy sector, such as its collaboration with X-energy and Westinghouse, further bolster its growth prospects. The global aerospace and defense market is expected to grow at a CAGR of 4.1% from 2022 to 2029, indicating a positive market trend for Curtiss-Wright.

The raised price target of $395 implies a potential upside of 37.1% from the current stock price, indicating that Morgan Stanley believes Curtiss-Wright's fundamentals and market position warrant a higher valuation. This increase likely stems from the company's strong financial performance, robust defense electronics sales, and bookings, as well as its strategic partnerships and expansion in the nuclear energy sector.


In conclusion, Morgan Stanley's price target revision for Curtiss-Wright reflects the company's strong fundamentals and growth prospects. With a forward P/E ratio of approximately 15.5x, Curtiss-Wright remains undervalued relative to its peers and its own historical valuation. As the company continues to deliver on its growth expectations and maintain its strong financial performance, investors may find Curtiss-Wright an attractive investment opportunity.