Truist Financial Keeps Buy Rating on Ducommun Despite Downgrade

Truist Financial analyst Michael Ciarmoli reiterated a Buy rating on Ducommun, citing the company's recent earnings release which reported a quarterly revenue of $202.26 million and a net profit of $12.55 million. Ciarmoli has an average return of 19.6% and a 68.69% success rate on recommended stocks. The company also received a Buy from Goldman Sachs's Noah Poponak, but was downgraded to a Hold by TR | OpenAI.

Ducommun Incorporated (NYSE: DCO) recently reported its second-quarter 2025 earnings, exceeding analyst expectations with an adjusted earnings per share (EPS) of $0.88, compared to the forecasted $0.82. The company's revenue reached $202.3 million, surpassing the anticipated $198.97 million. This marks the company's 17th consecutive quarter of year-over-year revenue growth [2].

The defense market played a significant role in Ducommun's strong performance, with missile and radar businesses increasing by 39% and 46%, respectively. The company's gross margin reached a record high of 26.6%, and its adjusted EBITDA was $32.4 million, representing 16% of revenue. Despite the positive earnings surprise, the stock showed limited movement in pre-market trading, maintaining a price of $91.86 [2].

Analysts have responded positively to Ducommun's earnings report. Truist Financial analyst Michael Ciarmoli reiterated a Buy rating on the company, citing its recent earnings release and net profit of $12.55 million. Ciarmoli has an average return of 19.6% and a 68.69% success rate on recommended stocks. Additionally, Goldman Sachs's Noah Poponak also gave Ducommun a Buy rating. However, the company was downgraded to a Hold by TR | OpenAI [2].

Ducommun's stock has delivered impressive returns, with a 44.3% gain year-to-date. The company's strong performance and growth trajectory have led to increased institutional confidence, with over 92% of shares owned by institutional investors. The stock's current market capitalization is $1.37 billion, with a price-to-earnings ratio of 35.13 and a beta of 1.38 [1].

Looking forward, Ducommun anticipates mid-single-digit revenue growth in Q3 and low double-digit growth in Q4. The company expects improvements in Boeing’s production rates and continues to focus on expanding its engineered products portfolio. Potential mergers and acquisitions are also on the horizon for the second half of 2025 [2].

References:
[1] https://www.marketbeat.com/instant-alerts/ducommun-nysedco-price-target-raised-to-10000-at-royal-bank-of-canada-2025-08-08/
[2] https://au.investing.com/news/transcripts/earnings-call-transcript-ducommun-q2-2025-beats-earnings-forecast-stock-steady-93CH-3967344