On Friday, Truist Securities adjusted its outlook on Moog Inc. (NYSE:MOG-A) shares, a designer and manufacturer of precision control systems and components for aerospace and defense applications. The firm raised its price target on the stock to $224 from $183, while reiterating a Buy rating.
The analyst at Truist Securities stated that their model remains unchanged and emphasized that the focus for investors will likely be on the company's financial year 2025 (FY25) outlook. The expectation is that the outlook will be conservative, particularly regarding free cash flow conversion, which may fall short of management's target of 75%.
Moog's exposure to wide-body aircraft is expected to mitigate the impact of any pressures in the commercial aerospace narrow-body segment. For FY25, the analyst predicts that the strength in the commercial aerospace aftermarket and defense sectors will drive top-line growth. Moreover, there is an anticipation of further modest operational margin expansion.
The report also highlighted that updates on Moog's operational improvement initiatives, order trends, and aircraft production rates will be important areas of interest for stakeholders. The company's performance in these areas will be closely watched as indicators of its future financial health and market position.
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