Woodward (WWD +3.4%) touches a 52-week high after Jefferies upgrades shares to Buy from Hold with a $135 price target, believing management is conservative with its operating margin targets for the aerospace business, which accounts for 75% of earnings and could surprise to the upside.
Jefferies analyst Sheila Kahyaoglu also notes the scarcity value of WWD given that few commercial aerospace assets are available for interested buyers.
She raises her FY 2020 EPS estimate for WWD to $5.60, which is at the high end of company guidance of $5.30-$5.60 and above Wall Street consensus at $5.47.
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