Carpenter Technology has multiple avenues of growth over the next few years, according to JPMorgan.
Analyst Bennett Moore initiated coverage of the U.S.-based stainless steel and alloys manufacturer with an overweight rating and a price target of $220.
"Shares have rallied ... on the back of strong demand, solid execution, and an attractive earnings outlook, and we feel the company is well positioned to capture further upside," Moore said in a Thursday note.
Moore's investment thesis is built on the company's robust demand for its mostly customer-specific premium products, which he said gives Carpenter strong pricing power and supported its position as an "indispensable supplier."
Carpenter Technology makes stainless steel and alloys, including a steel alloy used in manufacturing high-end knives.
Persons:
Carpenter, Bennett Moore, Moore, Tim Leedy
Organizations:
Carpenter Technology, JPMorgan, Carpenter's, Medianews, Getty
Locations:
U.S