Truist Securities Maintains Buy Rating for Woodward, Raises PT to $294 from $267.

Truist Securities Maintains Buy Rating for Woodward, Raises PT to $294 from $267.

Truist Securities has elevated its price target for Woodward (WWD) from $267 to $294, while retaining a Buy rating in anticipation of the company's upcoming Q2 performance report for the Aerospace and Defense sectors. The firm expects that tariff challenges will be manageable across both commercial aerospace and defense markets. SMID cap defense and space stocks are currently experiencing a valuation premium of 122% compared to their larger counterparts, according to the analysis. The supportive global defense expenditure environment and the ongoing strength in the commercial aerospace aftermarket are also noted as favorable factors.

Based on the one-year price targets provided by eight analysts, the average target price for Woodward Inc. (WWD) is $260.73, with a high estimate of $320.00 and a low estimate of $200.00. This average target implies an upside of 5.86% from the current price of $246.30. The average brokerage recommendation from 11 firms is 2.4, indicating an "Outperform" status [1].

GuruFocus estimates the GF Value for Woodward Inc. (WWD) at $172.92 in one year, suggesting a downside of 29.79% from the current price of $246.30. GF Value is calculated based on historical multiples and future performance estimates [1].

Woodward Inc. reported a 6% year-over-year increase in net sales for the second quarter of fiscal year 2025, with adjusted earnings per share rising by 4%. The aerospace segment achieved record sales, driven by strong defense OEM sales and commercial aftermarket growth. The company successfully delivered the first production Micronet XP advanced gas turbine control system for the US Navy, marking a significant milestone. However, industrial segment sales decreased by 5%, primarily due to a significant decline in China on-highway sales. Free cash flow for the first half of 2025 was $60 million, down from $88 million in the previous year, mainly due to increased working capital. Commercial OEM sales were down 9% due to a measured production ramp following the Boeing work stoppage [1].

Wall Street analysts have also shown confidence in Woodward Inc. Shares reached a new 52-week high during trading on July 8, 2025, with multiple analysts upgrading their ratings and target prices. UBS Group, Jefferies Financial Group, Wall Street Zen, Deutsche Bank Aktiengesellschaft, and Wells Fargo & Company have all raised their target prices and ratings for Woodward Inc. [2].

The company recently announced a quarterly dividend of $0.28 per share, with a yield of 0.44%. Insider activity has been notable, with executive vice presidents selling shares, and institutional investors increasing their stakes in the company [2].

In summary, Truist Securities' bullish outlook on Woodward Inc. is supported by strong financial performance, positive analyst ratings, and a favorable industry environment. Investors should closely monitor the company's upcoming Q2 results and the broader market conditions that may impact its stock price.

References:
[1] https://www.gurufocus.com/news/2971957/truist-increases-woodward-wwd-price-target-ahead-of-q2-results-wwd-stock-news
[2] https://www.marketbeat.com/instant-alerts/woodward-nasdaqwwd-hits-new-52-week-high-heres-what-happened-2025-07-08/