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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, subsystems 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.
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