UPDATE: Drexel Hamilton Reiterates Buy Rating, Raises PT on Textron
In a report published Monday, Drexel Hamilton reiterated its Buy rating on Textron (NYSE: TXT), and slightly raised its price target from $31.00 to $32.00.
Drexel Hamilton noted, “We remain Buy-rated on shares of TXT after a solid Q2 report, as results showed management's focus on execution is bearing fruit. While sales modestly outperformed (2.2% above our forecast), all four segments beat our margin forecast, with Cessna leading the pack (160 bps beat). Other levers to outperformance included lower-than-expected share-based comp and portfolio sale gains in Finance. Excluding the last two items, adjusted EPS of $0.50 (GAAP $0.58) still beat the Street mean of $0.44 and our $0.43 handily. Although management did not raise full-year EPS guidance ($1.80-2.00), absent a strong further downturn in the global macro, exceeding guidance seems likely to us.”
Textron closed on Friday at $26.50.
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