Susquehanna Starts Woodward (WWD) at Positive
Susquehanna analyst Charles Minervino initiates coverage on Woodward (NASDAQ: WWD) with a Positive rating and a price target of $423.00.
The analyst comments "Woodward (WWD) designs, manufactures and services fluid, combustion, electrical, propulsion, and motion control systems that perform in extreme environments – from aircraft and power plants to marine vessels, refineries, and mines. Between FY25 and FY28, we are forecasting WWD to grow: 1) revenue at a 12% CAGR; 2) EBITDA at a 17.5% CAGR; and 3) FCF at a 24% CAGR. The company is supported by commercial Aerospace OEM backlogs exceeding 15,000 aircraft, steady growth in utilization, and a broader shift toward electrification from hydraulic systems. The key to the WWD story is its strong exposure to Boeing and Airbus. As both OEMs ramp production, we expect the company to benefit, particularly with the higher-volume narrowbody programs. While we do recognize near-term headwinds for WWD's MRO business from elevated fuel prices and the potential for increased aircraft retirements, we believe the company remains well positioned over the medium-term. Furthermore, the effective integration of its recent acquisitions should provide additional growth opportunities."
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Shares of Woodward closed at $351.36 yesterday.