UPDATE: Stifel Downgrades Raytheon Company on Valuation

In a report published Monday, Stifel analyst William Loomis downgraded the rating on

from Buy to Hold, and removed the $77.00 price target. In the report, Stifel noted, “We are lowering our rating on Raytheon (RTN, $77.65) to Hold from Buy based on valuation, with the stock now trading above our prior target price of $77. While we believe Raytheon's favorable exposure to the international and classified market should allow it to outperform its peer group given the outlook for declining U.S. defense spending, at the current valuation relative to the broader market and historical valuation, we believe that the shares possess insufficient upside to warrant a Buy rating.” Raytheon Company closed on Friday at $77.65.