Goldman Sachs lowers its rating on Rockwell Collins COL from Neutral to Sell and reduces its price target from $57 to $46.
Goldman Sachs comments, "We expect Collins to underperform commercial aerospace peers for the duration of this cycle. In our view, the company is structurally challenged given its significant exposure to Defense and given new disruptive competition, and we see limited to no growth as a result over the next several years. We recognize the stock has already underperformed and its multiple is below the historical average, but believe these sticky challenges will continue to drive a de-rating and create persistent downside risk to EPS expectations. We also see multiple near-term negative catalysts."
COL closed at $50.18 on Tuesday.
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