Woodward Stock Gains After Deutsche Bank Upgrades On Exposure To ‘Right Submarkets’- Retail Bears Unfazed

Woodward Inc. (WWD) stock rose 5.7% on Tuesday after Deutsche Bank upgraded the stock to ‘Buy’ from ‘Hold’ and set a price target of $291.

According to TheFly, the brokerage said that the company has exposure to the "right submarkets" of the engine aftermarket and guided munitions.

Deutsche Bank noted that this exposure would help the aerospace equipment maker post strong earnings and positive estimate revisions in the aerospace segment, primarily driving the share price.

Aircraft engine demand remains robust, and planemaker Boeing's backlog of thousands of new aircraft is gradually stabilizing production.

Airlines are also spending on maintaining and repairing their existing aircraft, aiding companies like Woodward.

The brokerage noted that the trends supporting Woodward's likely 25% or more aerospace growth this year are unlikely to slow materially going forward.

Its aerospace segment sales for the second quarter of fiscal 2025 rose 13% to $562 million, and commercial aftermarket sales were up 23%. However, the company noted that aftermarket sales would moderate in the second half of the year.

Last month, Truist Securities raised the stock's price target to $232.

The brokerage noted that increasing volumes, prices, automation, and mix will push the aero segment margins higher in the coming years, according to TheFly.

Retail sentiment on Stocktwits was in the ‘bearish’ (40/100) territory, while retail chatter was ‘high.’

Woodward stock has gained over 37% this year.

Also See: UBS Stock Rises After Jefferies Upgrade On Discounted Valuation: Retail Still Leans Bearish

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