Raytheon Company Downgraded to “Neutral” at Zacks (RTN)
Raytheon Company (NYSE:RTN) was downgraded by Zacks from an “outperform” rating to a “neutral” rating in a research note issued to investors on Monday. They currently have a $98.00 price target on the stock. Zacks‘s target price indicates a potential upside of 5.13% from the company’s current price.
Zacks’ analyst wrote, “We are downgrading our recommendation on Raytheon Co. to Neutral from Outperform based on the prevailing domestic market headwinds and lower domestic revenues. The company experienced soft orders in the first quarter with its total as well as funded backlog declined by 4.1% and 1%, respectively. Orders need to accelerate for RTN to close in on its 2014 target of 1.00-1.05x. Yet, international sales will continue to be the company’s key revenue driver with rising demand from the Gulf countries. The company sees higher demand for its products from the international community, which will continue to ramp up from 26% of sales in 2013 to about 30% of sales and about 35% of bookings in 2014. Its business consolidation efforts will also provide successful cost-saving solutions, leading to expanding operating margin in the long term. “
Shares of Raytheon Company (NYSE:RTN) traded down 0.87% during mid-day trading on Monday, hitting $92.41. The stock had a trading volume of 716,309 shares. Raytheon Company has a one year low of $65.15 and a one year high of $102.33. The stock’s 50-day moving average is $96.01 and its 200-day moving average is $95.34. The company has a market cap of $28.911 billion and a price-to-earnings ratio of 14.48.
Raytheon Company (NYSE:RTN) last posted its quarterly earnings results on Thursday, April 24th. The company reported $1.87 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.77 by $0.10. The company had revenue of $5.50 billion for the quarter, compared to the consensus estimate of $5.50 billion. During the same quarter in the previous year, the company posted $1.56 earnings per share. The company’s revenue for the quarter was down 6.3% on a year-over-year basis. Analysts expect that Raytheon Company will post $6.93 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which is scheduled for Thursday, August 7th. Shareholders of record on Wednesday, July 2nd will be paid a dividend of $0.605 per share. This represents a $2.42 annualized dividend and a dividend yield of 2.60%. The ex-dividend date is Monday, June 30th.
A number of other firms have also recently commented on RTN. Analysts at JPMorgan Chase & Co. raised their price target on shares of Raytheon Company from $87.00 to $88.00 in a research note on Tuesday, June 17th. They now have a “neutral” rating on the stock. Separately, analysts at Wolfe Research initiated coverage on shares of Raytheon Company in a research note on Tuesday, May 13th. They set an “outperform” rating on the stock. Five analysts have rated the stock with a hold rating and nine have issued a buy rating to the company. The company currently has a consensus rating of “Buy” and a consensus price target of $102.81.
Raytheon Company together with its subsidiaries, is a technology company specializing in defense, homeland security and other government markets worldwide.
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