Textron Rating Lowered to Neutral at Bank of America Corp. (TXT)
Textron (NYSE:TXT) was downgraded by stock analysts at Bank of America Corp. from a “buy” rating to a “neutral” rating in a report issued on Tuesday, Stock Ratings News reports. They currently have a $40.00 target price on the stock, up from their previous target price of $29.00. Bank of America Corp.’s target price points to a potential upside of 11.86% from the stock’s previous close.
The analysts wrote, “In our opinion, the stock is approaching fair value considering its recent run,” the report said. “In 2013, TXT was up 48.3% vs. the S&P 500 Index which appreciated 29.6%. In our view, TXT is already incorporating earnings accretion related to the acquisition of Beechcraft Corp as well as modest recovery of the business jet industry. We are increasing our price objective to $40 from $29 as we factor in a higher multiple on TXT’s commercial business, roll over the valuation model to reflect 2015 earnings vs. 2014 earnings and account for Beechcraft in our estimates. At current levels, we see limited upside for the stock and consequently, we are downgrading to Neutral from Buy.”
Several other analysts have also recently commented on the stock. Analysts at Cowen and Company raised their price target on shares of Textron from $40.00 to $45.00 in a research note to investors on Thursday, January 2nd. Separately, analysts at Thomson Reuters/Verus downgraded shares of Textron from a “buy” rating to a “hold” rating in a research note to investors on Monday, December 30th. Finally, analysts at Zacks downgraded shares of Textron from a “neutral” rating to an “underperform” rating in a research note to investors on Wednesday, October 30th. They now have a $26.00 price target on the stock. One investment analyst has rated the stock with a sell rating, seven have assigned a hold rating and five have issued a buy rating to the company’s stock. Textron currently has a consensus rating of “Hold” and an average target price of $37.55.
Shares of Textron (NYSE:TXT) traded down 1.11% on Tuesday, hitting $35.76. 3,002,626 shares of the company’s stock traded hands. Textron has a 1-year low of $24.87 and a 1-year high of $37.43. The stock has a 50-day moving average of $33.58 and a 200-day moving average of $29.. The company has a market cap of $10.054 billion and a price-to-earnings ratio of 21.61.
Textron (NYSE:TXT) last announced its earnings results on Friday, October 18th. The company reported $0.35 EPS for the quarter, missing the Thomson Reuters consensus estimate of $0.47 by $0.12. The company had revenue of $2.90 billion for the quarter, compared to the consensus estimate of $2.98 billion. During the same quarter in the previous year, the company posted $0.48 earnings per share. The company’s revenue for the quarter was down 3.2% on a year-over-year basis. On average, analysts predict that Textron will post $1.77 earnings per share for the current fiscal year.
Textron Inc is a multi-industry company engaged in aircraft, defense, industrial and finance businesses to provide customers with products and services worldwide.
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