Howmet Aerospace Rebounds After SpaceX Turbine Plan Triggers Near-20% Slide From Highs

Howmet Aerospace shares fell as much as 9% on Monday after SpaceX disclosed plans to cast turbine blades and vanes in-house for a 20-gigawatt gas-turbine power project in Bastrop, Texas, designed to supply AI data centers. The announcement triggered a broader selloff that pushed Howmet roughly 20% below its recent record high, leaving the stock down about 14.5% over the trailing four weeks heading into Tuesday.

Two Wall Street banks stepped in to call the decline overdone. Citi maintained a Buy rating with a price target of $329, implying roughly 34% upside from Monday's close of $244.95, and placed Howmet on a 30-day upside catalyst watch. Bernstein separately reaffirmed its Outperform rating and raised its price target to $328, with analyst Douglas Harned arguing that SpaceX's move may reflect tight industry capacity rather than a structural threat to Howmet's core business.

Bernstein's view is that the SpaceX news actually underscores the exceptional demand Howmet faces in industrial gas turbines, a segment where the company is targeting roughly $2 billion in revenue. Howmet shares recovered Tuesday as investors weighed the analyst commentary, though options activity remained elevated, with the stock appearing on screens for both increasing implied volatility and unusual put volume. Despite the recent slide, Howmet remains up about 19.5% for 2026, outpacing the S&P 500's 12.3% gain, and has climbed 41% over the past year. The selloff also dropped Howmet one spot in S&P 500 market-cap rankings, with McKesson Corp passing it for the number 111 position.