Morgan Stanley designated Howmet Aerospace (HWM) as its top pick in the commercial aerospace sector on October 16, 2026, replacing FTAI Aviation. The investment bank reportedly seeks to capitalize on the stock's recent price decline ahead of its third-quarter earnings report.
Analysts at the firm believe the primary challenge for the aerospace industry has shifted from demand to supply-chain execution. This positions component suppliers like Howmet favorably, as they are crucial to increasing aircraft production rates. Morgan Stanley expressed confidence in companies poised to benefit from these manufacturing ramps.