Moog is courting more customers for its aircraft, spacecraft and missile systems across several industries, priming its shares to rally, according to JPMorgan. The bank initiated coverage of the air and spacecraft systems maker. It rated Moog overweight and put a $520 price target on shares, implying 32% upside from Friday’s close. “The multi-year, pricing-driven transformation is tied to tangible manufacturing choices, not messaging, analyst Tomohiko Sano said Monday in a note to clients. “With content embedded in long-lifecycle platforms and diversified exposure to missile replacement, commercial aero, industrial automation, and AI-driven infrastructure buildout, we view Moog as a resilient compounder positioned for…revenue growth through [fiscal year 2028] and beyond with sustainable value.” MOG.A YTD mountain MOG.A year to date Moog designs and manufactures precision steering controls and other systems used in several missile programs, including PAC-3, THAAD and Tomahawk, according the analyst. He noted that missile production rates are projected to double or even quadruple over the next few years, which should boost the company’s stock. Moog is also engaged in several other projects across the aerospace and defense industry as well as the commercial aviation industry, which could drive even more upside to its shares, Sano said. “Moog is well-positioned to benefit from the commercial aircraft [original equipment manufacturer] ramp, underpinned by large Boeing and Airbus backlogs,” he wrote. The U.S.’ continued investments into fighter jets such as the F-35 and tactical transport aircrafts like the MV-75 could also be a boon for Moog and its stock, he added. JPMorgan’s call falls in line with consensus on the Street. Of the four analysts covering Moog, three have a buy or strong buy rating on the stock, LSEG data shows. Shares have jumped 61% year to date.
JPMorgan likes this missile and aircraft systems maker. Here’s why
