On Thursday, TD Cowen showed confidence in Moog Inc. (NYSE:MOG-A) shares, a designer and manufacturer of precision control components and systems, by increasing its price target on the stock. The price target was raised to $230.00 from the previous target of $222.00. The firm maintained a Buy rating on the shares, indicating a positive outlook on the company's future performance.
The analyst at TD Cowen highlighted Moog's potential for continued growth, driven by the company's ongoing efforts to expand its margins and the steady demand in its end markets. This optimism remains despite expectations of a softer than anticipated commercial original equipment (OE) ramp-up in fiscal year 2025, which the analyst views as a mix plus for the company.
TD Cowen stands out with its fiscal year 2025 adjusted earnings per share (EPS) estimate for Moog at $8.40, which is approximately 2% higher than the consensus on Wall Street. This estimate is tied to the belief in Moog's continued margin improvements.
The new price target of $230 suggests a valuation of about 15 times the calendar year 2025 estimated enterprise value to earnings before interest, taxes, depreciation, and amortization (EV/EBITDA). This is roughly one turn above the current levels.
The firm supports the higher valuation, believing it to be justified by the increased visibility into Moog's earnings and a slight upward revision bias for the fiscal year 2025 and beyond. The analyst's statement underscores the expectation that Moog's stock will progressively rise, backed by the company's strategic initiatives and favorable market conditions.
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