A defense contractor that traces its roots back to the original pioneers of aviation — Glenn Curtiss and Wilbur and Orville Wright — is “a premium asset in a scarce pool” and its shares are a great opportunity, according to analysts led by Kristine Liwag at Morgan Stanley. Shares in Curtiss-Wright , which makes sensors, controls, sub-systems and mission critical components for aircraft, have already climbed about 24% in 2023. Based on Morgan Stanley’s new price target of $229 (22% higher than the old $188 objective), the stock could rally another 13% from Friday’s close. CW 1Y mountain Curtiss-Wright shares over the past year. The “risk reward skews positive” on Curtiss-Wright shares, the Morgan Stanley analysts wrote in a Sunday note, upgrading the North Carolina manufacturer to overweight from equal-weight. “The Pivot to Growth continues and endmarket demand remains robust, positioning CW for underappreciated topline expansion,” Morgan Stanley said, referring to management’s strategy. “Commercial nuclear optionality and a May 2024 Investor Day could deliver further upside.” Curtiss-Wright’s defense electronics business could grow at a 13% compounded annual rate through 2024 in light of heightened Defense Department outlays and reduced supply chain pressures, Morgan Stanley said. The investment bank also noted “a scarcity of high-quality” aerospace and defense stocks in the small- to mid-cap investment universe. — CNBC’s Michael Bloom contributed reporting
