Curtiss-Wright (CW) is on track to outperform its three-year plan, driven by strong defense and commercial nuclear demand, continued margin gains, and solid free cash flow, Morgan Stanley said in a Friday note.

The brokerage cited mid-teens Commercial Nuclear growth, strong Aerospace & Defense demand, and rising margins, noting its $760 price target reflects a higher 2027 earnings multiple plus upside from potential AP1000 opportunities.

According to the report, management forecast 6% to 8% revenue growth in 2026, earnings per share of $14.70 to $15.15 which is ahead of consensus, margin expansion of 30 to 60 basis points, and free cash flow of $575 to $595 million.

Analysts polled by FactSet expect 2026 EPS of $14.93.

Morgan Stanley said the company merits a premium valuation based on strong execution, favorable end markets, and high FCF conversion, calling 2026 a "favorable setup" for the shares.

The firm maintained its overweight rating on the stock and raised its price target to $760 from $660.

Shares were up 3% in recent trading Friday.

Price: 691.25, Change: +20.19, Percent Change: +3.01