KeyBanc Upgrades Woodward (WWD) to Sector Weight

KeyBanc upgraded Woodward (NASDAQ: WWD) from Underweight to Sector Weight. Yesterday GE Aviation and Woodward announced a strategic 50/50 joint venture for fuel systems for GE's large commercial aircraft engine lines. Woodward also announced plans to buyback $250 million shares.

Analyst Michael F. Ciarmoli said, "We upgrade WWD to Sector Weight from UW following the Company's announcement that it is forming a JV with General Electric and will use the $250M cash infusion to buy back ~7.7% of its stock over the next 12 months. The inclusion of the JV does not change WWD's revenue growth and will be margin dilutive, but with the buyback the deal is expected to be $0.20 accretive to EPS in FY16. The upfront cash payment accelerates the monetization of the 777X, and on the surface looks to be worth $4/share."

For an analyst ratings summary and ratings history on Woodward click here. For more ratings news on Woodward click here.

Shares of Woodward closed at $51.08 yesterday.

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