Woodward (WWD – Research Report), the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Gautam Khanna from TD Cowen maintained a Hold rating on the stock and has a $200.00 price target.
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Gautam Khanna has given his Hold rating due to a combination of factors that reflect both positive developments and potential challenges for Woodward. The company’s second-quarter performance showed strong incremental growth in the aerospace sector and a significant increase in China overhaul sales, which were double the expected figures. However, these gains were partly attributed to a low base, and there is caution regarding the sustainability of such growth, especially with the anticipated moderation in aerospace aftermarket growth rates in the second half of the year.
Moreover, while the pricing for JDAM is expected to increase in the fourth quarter, and tariff challenges are considered manageable, there are concerns about the impact of tariff policies on marine original equipment and aftermarket demand. The company’s guidance for fiscal 2025 includes a modest increase in adjusted EPS and sales, but the potential for changes in demand dynamics and the shift in sales mix could affect future performance. These mixed signals contribute to the Hold rating, suggesting that while there are opportunities for growth, there are also risks that warrant a cautious approach.
In another report released on April 15, Wells Fargo also maintained a Hold rating on the stock with a $175.00 price target.