Howmet Aerospace (HWM) is well positioned to benefit from strong demand in aerospace engines and gas turbines, RBC Capital Markets said in a note Tuesday.

Management expects revenue from gas turbines to more than double over the next three to five years, while commercial deliveries are projected to grow about 9% through 2030, the firm said.

RBC said investors remain focused on the company's ability to expand margins as capacity ramps within the engine products business.

The firm also noted recent acquisitions, including Brunner and the planned purchase of CAM, as part of a capital allocation strategy that balances investment, share repurchases, dividends and opportunistic M&A.

"In our view, the company is well positioned to see faster than industry growth from share and content gains and net pricing, which we expect to sustain across the aerospace cycle," the report said.

RBC maintained an outperform rating on Howmet Aerospace and raised its price target to $300 from $275.

Price: 251.86, Change: -2.05, Percent Change: -0.81