UPDATE: J.P. Morgan Reiterates Neutral Rating, Raises PT on Textron

In a report published Monday, J.P. Morgan & Co. reiterated its Neutral rating on Textron

, and raised its price target from $27.00 to $29.00. J.P. Morgan noted, “We view TXT principally as a play on the later-cycle business jet markets via Cessna, the dominant driver of earnings and sentiment. The Textron portfolio has strong brands, including Bell and Cessna, both of which can participate in a cyclical recovery in related end markets; however, each faces strong competitors that make share gains and pricing leverage tougher to come by this cycle versus last. Defense exposure at Bell and Systems is the principal offset to the more cyclical commercial businesses, in which earnings declines are likely post-2014 as near term upside from the key V-22 program normalizes. Our Neutral rating is primarily based on the lack of visibility on Cessna's earnings recovery in 2013 and beyond, a challenge given future headwinds from Defense-related earnings.” Textron closed on Friday at $27.59.