Ducommun (DCO) provided an "impressive" set of 2032 targets at its investor day event, but the current stock multiple already reflects much of the upside, RBC said in a note Thursday.

The firm struck a very confident tone on the market outlook, offering opportunity to expand content with better pricing across its aerospace and defense portfolio, the report said.

The company continues to lean into its Engineered Products portfolio for growth and margin expansion, the note added.

RBC analysts said they continue to be impressed by the core execution, which should continue.

"However, we believe the current price reflects much of the missile growth and execution, and we are less confident in out-year defense budget growth (crowding out risk)," they said.

RBC kept its sector perform rating with a price target of $200.

Price: 166.35, Change: -0.21, Percent Change: -0.13