Woodward initiated with an Outperform at Credit Suisse

Credit Suisse analyst Scott Deuschle initiated coverage of Woodward with an Outperform rating and $120 price target. The firm believes Woodward is one of the most severely underearning companies within its coverage, with 2023 EBITDA 27% below 2019 levels versus peers tracking toward 2023 EBITDA 15% above 2019 levels. A key part of Credit Suisse’s investment thesis is that Woodward will correct the problems driving the business to underearn, and this correction will create upside pressure to EPS and revisions thereof.