RBC Capital Lifts Ducommun Incorporated (DCO)’s Price Target To $95, Maintains Outperform Rating

Ducommun Incorporated (NYSE:DCO) is among the 10 Best Small Cap Defense Stocks to Buy According to Hedge Funds. On July 3, RBC Capital lifted its price target for the stock to $95 from $72, while maintaining an Outperform rating for its shares.

Analysts believe the company’s engineered products portfolio is a high-margin business, with the potential to drive significant earnings growth. Ducommun Incorporated (NYSE:DCO)’s shares have gained 36% year-to-date, which the firm attributed to strong commercial original equipment sentiment and an encouraging outlook for Boeing’s production ramp.

Moreover, RBC Capital sees continued value exposure for the stock in the small-cap defense sector, with the outlook being shaped by expected growth in fiscal 2026 defense spending.

Overall, Wall Street analysts remain bullish on the stock with a consensus Buy rating. Ducommun Incorporated (NYSE:DCO) provides manufacturing solutions to customers in the global aerospace, defense, military, space, and industrial markets.

While we acknowledge the risk and potential of DCO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DCO and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.