Woodward initiated with a Buy at UBS

UBS initiated coverage of Woodward with a Buy rating and $152 price target. The analyst states that new aircraft orders are at a record level and book to bill is at 2-times, with Woodward expected to benefit from its above-average content increases on next-gen aircraft. UBS adds that its industrial end-market build indicates multiple years of mid-single-digit growth despite the 30% step-up this year. The firm also believes that Woodward is set to return a significant amount of cash to shareholders, with leverage near multi-year lows.