Gautam Khanna, an analyst from TD Cowen, maintained the Buy rating on Moog (MOG.A – Research Report). The associated price target is $205.00.
Gautam Khanna has given his Buy rating due to a combination of factors that highlight Moog’s potential for growth despite some challenges. The company’s second-quarter sales and earnings per share exceeded expectations by approximately 3%, indicating strong underlying demand and effective execution. Although free cash flow was weaker than anticipated, leading to a reduction in the full-year free cash flow conversion guidance, Moog maintained its commercial aircraft sales guidance and even increased its margin guidance for this segment, driven by a positive outlook in the aftermarket.
Khanna also considered the impact of tariffs, which were not included in Moog’s fiscal 2025 guidance but were estimated to pose a $10-20 million operational profit risk. Despite this, the exposure to tariffs is primarily in the commercial aircraft and industrial segments, with minimal impact on military aircraft. The company’s ability to manage these risks, coupled with its strong performance in key areas, supports the Buy rating as Moog is well-positioned to capitalize on its strengths in the market.
In another report released on April 17, Truist Financial also maintained a Buy rating on the stock with a $215.00 price target.