Deutsche Bank analyst Scott Deuschle raised the price target on Woodward (NASDAQ: WWD) to $200.00 (from $182.00) while maintaining a Buy rating.

The analyst comments "WWD followed the strong F2Q beat with an equally strong full-year raise, including an 8% raise on FCF and a 13% raise on full-year EPS, resulting in 2024 EPS now tracking to a +19% revision off the original guide just two quarters into the year. In fact, the midpoint of FY24 EPS guidance is now tracking 114% above FY22 (FCF/sh +154%), illustrating the success that Mr. Blankenship has had in improving the operational results of a business which we ultimately think could be among the best assets within our coverage. Importantly, we still see multiple levers for additional estimate upside this year. For one, Aerospace margins now look exceptionally conservative, and we note that margins typically increase in 2H relative to 2Q, vs. the implied guide for a decrease even at the high-end of the guidance. We also see solid potential for commercial aftermarket growth to continue to accelerate given comps do not become meaningfully tougher in 2H, while defense OE and defense aftermarket also look to be on firm footing. We also see further upside potential on Industrial, where demand read-throughs have been solid (e.g., Wartsila's reported 23% order growth, CAT E&T strength), and the LNG/diesel price spread has remained supportive of the China natural gas truck business. Capital return should also help support 2H upside; WWD ended F2Q with a $317m cash balance, should generate DBe $263m of FCF in 2H, and sounded committed to the buyback on the call. All in, WWD is a name trading at a discount to high-quality peers despite growing EPS and FCF/sh faster than those peers, driving better revisions than those peers, and offering a long-term organic growth story that is generally better than peers— all while simultaneously having lower leverage than peers. We are once again raising our estimates, and are raising our target price on these higher estimates. Reiterate Buy. With 32% upside to our updated target price, WWD remains a top idea."