TD Cowen analyst Gautam Khanna has maintained their neutral stance on WWD stock, giving a Hold rating today.
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Gautam Khanna’s rating is based on Woodward’s recent financial performance and market dynamics. The company reported stronger-than-expected earnings for Q1 due to lower tax rates and improved Aero earnings before interest and taxes (EBIT), buoyed by robust aerospace aftermarket and defense original equipment sales. Despite these positive results, there are concerns about potential deceleration in aerospace aftermarket growth and challenges in sequential defense growth.
Furthermore, while industrial margins have been favorable and above expectations, the minimal sales from China offset some of the gains. The company is projecting a drop in China sales, which could impact overall growth. Although Woodward’s core industrial margins show strength and potential upside, the uncertainties around global tariffs and their effect on industrial demand, along with the expected completion of the SAF actuation acquisition, contribute to the Hold rating. Thus, the combination of these factors suggests a cautious outlook, warranting a Hold rating for Woodward’s stock.
According to TipRanks, Khanna is a top 100 analyst with an average return of 16.7% and a 71.29% success rate. Khanna covers the Industrials sector, focusing on stocks such as Boeing, Booz Allen, and Carpenter Technology.
In another report released today, Wells Fargo also maintained a Hold rating on the stock with a $205.00 price target.