Market Overview

UPDATE: Credit Suisse Upgrades Textron to Outperform, Raises PT

Related TXT
Ready, Aim, Fire: Northrop Best Bet To Benefit From Overhaul Of US Air Power, Analyst Says
25 Stocks Moving In Wednesday's Pre-Market Session

In a report published Friday, Credit Suisse Group upgraded its rating on Textron (NYSE: TXT) from Neutral to Outperform, and raised its price target from $26.00 to $30.00.

Credit Suisse noted, “TXT is one of the few diversified companies in our coverage that has not seen substantial strategic / portfolio / capital allocation shifts, either driven by activists (ADT, GDI, IR), or management (SPW, TYC). We note that the dividend is 90% below the prior peak, the Industrial segment has little overlap with the other businesses, Systems is a drag on the valuation multiple, and the company is not buying back stock. Selling the Systems/Industrial businesses could raise pre-tax proceeds worth ~45% of mkt cap and simplify the business model, which therefore makes TXT a potential target for activist-type shareholders. We see upside to >$30 on a SOTP basis. We are lowering our 2013 EPS estimates to $2.14 (from $2.32).”

Textron closed on Thursday at $25.69.

Latest Ratings for TXT

Sep 2017Drexel HamiltonUpgradesHoldBuy
Aug 2017Morgan StanleyMaintainsUnderweight
Jul 2017Bank of AmericaDowngradesUnderperform

View More Analyst Ratings for TXT
View the Latest Analyst Ratings

Posted-In: Credit Suisse GroupAnalyst Color Upgrades Analyst Ratings


Related Articles (TXT)

View Comments and Join the Discussion!