Truist maintains Buy on Moog stock, $237 target on operational gains

On Thursday, Truist Securities reaffirmed their positive stance on Moog Inc. (NYSE:MOG-A), maintaining a Buy rating and a $237.00 price target for the company’s shares. Truist’s analyst Michael Ciarmoli highlighted the company’s ongoing operational improvements as a driver for increasing profitability, particularly in terms of margins. These improvements are expected to contribute to a consistent growth in earnings per share (EPS) over the coming years.

The endorsement follows recent investor meetings with Moog’s management, including CEO Pat Roche and CFO Jennifer Walter, where discussions focused on the company’s progress and future prospects. Ciarmoli expressed confidence that Moog is at the beginning of a journey that will see significant operational advancements. The analyst projected that these improvements could lead to a mid to upper teens EPS compound annual growth rate (CAGR).

According to Ciarmoli, Moog’s financial outlook appears promising, with forecasts suggesting that by fiscal year 2026, the company’s EPS could reach near $10 per share, and by fiscal year 2028, it could approach or even exceed $13 per share. These projections are based on the company’s current trajectory and the ongoing enhancements in its operational efficiency.

The analyst also pointed out that, despite the anticipated growth, Moog’s shares are currently trading at a discount compared to its peers. This valuation gap is seen as an opportunity for investors, as the company’s stock appears undervalued in relation to its potential earnings growth.

Moog, known for its precision control components and systems, is expected to become more institutionally relevant as it continues on its path of operational improvements and profitability enhancements. The company’s management team is actively engaged in this transformation, which is anticipated to yield positive financial results in the foreseeable future.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.