UPDATE: Nomura Reiterates Neutral Rating, Raises PT on Textron Following 4Q14 EPS Report

In a report published Thursday, Nomura analyst Jonathan Wright reiterated a Neutral rating on Textron TXT, and raised the price target from $40.00 to $45.00. In the report, Nomura noted, “TXT reported 4Q14 EPS of $0.76, in line with consensus. Over the course of 2014, we had flagged concerns around a slowdown in commercial helicopter deliveries and the impact of lower V-22 deliveries on Bell margin. After a noisy year in which TXT managed the successful integration of Beechcraft and restructuring of Bell, 2015 is shaping up to be a ‘cleaner' year. We see less risk around Bell margins and instead think commercial demand in both Bell and Cessna will be key to meeting/beating the group's 2015 targets. Our 2015 EPS estimate is unchanged at $2.45 and we initiate our 2016 estimate of $2.85. We increase our TP to $45 based on ~16x our 2016 estimate. With minimal FX / O&G exposure, TXT's growth is perhaps somewhat more secure than other industrial peers; however, having outperformed the S&P 500 by 15% since the end of 3Q14 and now trading at 14.7x our 2016 EPS estimate, we think further upside may be limited absent a material acceleration in new business jet demand.” Textron closed on Wednesday at $41.99.