Howmet Aerospace (HWM) is heading for a "strong" Q1 start, with the gas turbine market continuing to be a larger part of the story, RBC Capital Markets said in a note Thursday.

"The 2026 outlook bracketed consensus, which we view positively given HWM's conservative approach to guidance, and the 1Q26 guide supports a strong start to 2026," the report said.

The note said that the gas turbine market is a key growth area for the firm, representing about 12% of revenue but growing fastest, with Q4 revenue up 32% and full-year 2025 up 25%.

"Both M&A and the organic growth opportunity within the gas turbine market are growing parts of the Howmet story," it said. "The multiple streams of value creation is a positive."

RBC raised its price target to $275 from $255 while maintaining its outperform rating.

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