Wells Fargo has adjusted its price target for Woodward (WWD, Financial), increasing it slightly from $172 to $175. This decision comes even as the firm maintains an Equal Weight rating on the company's shares. The adjustment occurs amidst broader measures taken by Wells Fargo to lower estimates across the aerospace sector.
The reasoning behind this sector-wide reassessment is the anticipated impact of a global economic slowdown, which could significantly affect both original equipment manufacturers and the aftermarket. According to Wells Fargo's analysis, such a slowdown could decrease demand for aircraft by approximately 300 basis points. This would result in a 6% drop in aftermarket sales and a 10% decline in original equipment sales.
Despite these challenges, the slight increase in Woodward's price target reflects a nuanced outlook, balancing the pressures of reduced demand with the firm's strategic positioning in the aerospace industry.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 10 analysts, the average target price for Woodward Inc (WWD, Financial) is $193.23 with a high estimate of $229.00 and a low estimate of $167.34. The average target implies an upside of 13.65% from the current price of $170.02. More detailed estimate data can be found on the Woodward Inc (WWD) Forecast page.
Based on the consensus recommendation from 12 brokerage firms, Woodward Inc's (WWD, Financial) average brokerage recommendation is currently 2.6, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Woodward Inc (WWD, Financial) in one year is $167.54, suggesting a downside of 1.46% from the current price of $170.02. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Woodward Inc (WWD) Summary page.
