Ducommun Incorporated (NYSE:DCO) is recognized as one of the 10 Best Small Cap Defense Stocks to Buy According to Hedge Funds. RBC Capital recently raised its price target for DCO to $95 from $72, affirming an Outperform rating for the stock.

Analysts highlight DCO’s high-margin engineered products portfolio, predicting significant earnings growth. The company’s shares have surged 36% year-to-date, driven by strong commercial original equipment sentiment and positive expectations for Boeing’s production ramp.

RBC Capital foresees continued value exposure for DCO in the small-cap defense sector, fueled by anticipated growth in fiscal 2026 defense spending. Wall Street analysts maintain a bullish outlook on the stock, with a consensus Buy rating.

While DCO shows promise as an investment, certain AI stocks may offer greater upside potential and lower downside risk. Investors seeking undervalued AI stocks benefiting from tariffs and onshoring trends can explore alternative opportunities.

Read more at Yahoo Finance: RBC Capital Lifts Ducommun Incorporated (DCO)’s Price Target To $95, Maintains Outperform Rating