In a report released today, Ronald Epstein from Bank of America Securities reiterated a Hold rating on Textron, with a price target of $90.00.
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Ronald Epstein has given his Hold rating due to a combination of factors that balance Textron’s solid demand backdrop with execution and program risks. The company’s business aviation segment continues to enjoy healthy jet demand and has successfully cleared several key aircraft certifications, but this flurry of approvals could strain short‑term production capacity, especially in an industry still grappling with supply chain constraints. While management reports recent improvement on the supply side, Epstein appears to see limited near‑term upside to justify a more bullish stance at a share price already close to his $90 price objective.
At the same time, the accelerated timetable for the Army’s FLRAA program (MV‑75) presents both meaningful long‑term opportunity and notable near‑term risk. Textron must commit hundreds of millions of dollars of incremental capital in 2026 and 2027 to prepare for production and secure long‑lead items before firm production awards are in place, creating uncertainty around returns. Although the Systems segment is showing modest growth, aided by new contracts in jamming services and vehicles, 2026 is framed as a transition year across parts of the portfolio. Taken together—strong demand, but constrained execution, elevated investment risk, and shares trading near his target—Epstein concludes that a Neutral/Hold rating is appropriate at this time.
In another report released on January 29, Citi also maintained a Hold rating on the stock with a $97.00 price target.