UPDATE: Jefferies Initiates Woodward at Hold; Growth Already Priced In

Jefferies initiated coverage on Woodward

with a Hold rating and a $36 price target. Jefferies commented, "WWD should benefit from the rise in commercial aircraft deliveries and additional content on new narrowbody platforms starting in 2015. However, we think market expectations are overly optimistic on the Energy segment (52% of 2013E sales). Although the long-term global gas turbine outlook is favorable, we see few catalysts to drive an acceleration from what has been a sluggish 2012 for IGT order intake. We also assume a sharp drop (35% decline) in wind next year partially due to likely PTC expiration in the United States. Finally, the outlook for on-highway and mining customers is deteriorating." Woodward closed at $34.29 on Wednesday.