Carpenter Technology (NYSE:CRS) Downgraded to Hold Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Carpenter Technology from “Buy” to “Hold,” though the broader analyst consensus remains “Buy,” with an average price target of $577.25.
• Carpenter Technology reported quarterly EPS of $3.23, beating estimates of $3.09, while revenue of $679.7 million fell short of the $863.33 million consensus; revenue nevertheless rose 12.6% year over year.
• Zacks raised its fiscal 2027 and 2028 EPS forecasts and maintained a “Strong-Buy” rating, but the stock’s elevated trailing P/E of about 47 leaves its valuation dependent on delivering the projected earnings growth.

Carpenter Technology (NYSE:CRS - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued on Saturday.

CRS has been the topic of several other research reports. TD Cowen increased their price objective on shares of Carpenter Technology from $470.00 to $650.00 and gave the stock a "buy" rating in a research note on Monday, July 13th. Susquehanna cut their target price on shares of Carpenter Technology from $680.00 to $600.00 and set a "positive" rating for the company in a research report on Friday, July 31st. Weiss Ratings cut shares of Carpenter Technology from a "buy (b+)" rating to a "buy (b)" rating in a report on Wednesday, June 3rd. KeyCorp decreased their price target on shares of Carpenter Technology from $644.00 to $608.00 and set an "overweight" rating on the stock in a research report on Monday, August 3rd. Finally, Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and set a $500.00 price target on shares of Carpenter Technology in a research note on Thursday, April 30th. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat.com, Carpenter Technology currently has an average rating of "Buy" and an average price target of $577.25.

Carpenter Technology Stock Up 1.2%

Carpenter Technology stock opened at $494.98 on Friday. Carpenter Technology has a one year low of $228.00 and a one year high of $625.98. The stock has a fifty day moving average of $566.88 and a 200 day moving average of $468.62. The company has a debt-to-equity ratio of 0.31, a quick ratio of 2.23 and a current ratio of 3.81. The stock has a market cap of $24.53 billion, a PE ratio of 47.05, a price-to-earnings-growth ratio of 1.76 and a beta of 1.25.

Carpenter Technology (NYSE:CRS - Get Free Report) last announced its earnings results on Thursday, July 30th. The basic materials company reported $3.23 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.09 by $0.14. The business had revenue of $679.70 million for the quarter, compared to analysts' expectations of $863.33 million. Carpenter Technology had a return on equity of 26.46% and a net margin of 16.96%.The business's revenue for the quarter was up 12.6% on a year-over-year basis. During the same period last year, the firm posted $2.21 earnings per share. As a group, sell-side analysts predict that Carpenter Technology will post 13.08 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. Woodline Partners LP purchased a new position in Carpenter Technology during the first quarter valued at approximately $4,050,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in shares of Carpenter Technology by 1.7% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 104,785 shares of the basic materials company's stock worth $18,985,000 after purchasing an additional 1,701 shares in the last quarter. Focus Partners Wealth increased its stake in shares of Carpenter Technology by 7.3% in the first quarter. Focus Partners Wealth now owns 4,615 shares of the basic materials company's stock worth $836,000 after purchasing an additional 314 shares in the last quarter. Quantbot Technologies LP bought a new stake in shares of Carpenter Technology during the 2nd quarter valued at $80,000. Finally, Arrowstreet Capital Limited Partnership bought a new stake in shares of Carpenter Technology during the 2nd quarter valued at $533,000. 92.03% of the stock is currently owned by institutional investors.

Key Carpenter Technology News

Here are the key news stories impacting Carpenter Technology this week:

• Positive Sentiment: Zacks raised its FY2027 EPS forecast to $12.75 from $12.12 and its FY2028 forecast to $14.99 from $14.49, signaling stronger anticipated profit growth. The firm also increased estimates for every listed quarter from Q1 2027 through Q4 2028. Carpenter Technology stock information
• Positive Sentiment: Individual quarterly revisions included Q1 2027 EPS rising to $2.89 from $2.83, Q2 2027 to $2.96 from $2.85, Q3 2027 to $3.33 from $3.19, and Q4 2027 to $3.57 from $3.25. Estimates for Q1 through Q4 2028 were also increased, with Q4 2028 moving to $4.14 from $4.00.
• Positive Sentiment: Zacks Research maintains a “Strong-Buy” rating on CRS, reinforcing the bullish interpretation of the revisions and suggesting confidence in Carpenter Technology’s longer-term earnings outlook.
• Neutral Sentiment: The revisions primarily affect fiscal 2027 and 2028, so they are forward-looking rather than a new report on current-quarter results. The current-year consensus EPS forecast remains $12.92.
• Neutral Sentiment: CRS remains valued at a relatively elevated trailing P/E of about 47, meaning continued gains may depend on the company delivering the projected earnings growth. The stock is also below its 50-day moving average but above its 200-day average.

Carpenter Technology Company Profile

Carpenter Technology Corporation engages in the manufacture, fabrication, and distribution of specialty metals in the United States, Europe, the Asia Pacific, Mexico, Canada, and internationally. It operates in two segments, Specialty Alloys Operations and Performance Engineered Products. The company offers specialty alloys, including titanium alloys, powder metals, stainless steels, alloy steels, and tool steels, as well as additives, and metal powders and parts. It serves to aerospace, defense, medical, transportation, energy, industrial, and consumer markets.

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