Textron, the Industrials sector company, was revisited by a Wall Street analyst yesterday. Analyst Gautam Khanna from TD Cowen maintained a Hold rating on the stock and has a $90.00 price target.
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Gautam Khanna has given his Hold rating due to a combination of factors impacting Textron’s current and future performance. Despite the challenges posed by volatile trade policies, Textron has managed to maintain steady demand across its segments, including non-defense products such as civilian helicopters and business aircraft. The company’s aviation segment is showing gradual improvement in productivity, with expectations of higher margins in the latter half of the year, although some production delays were noted.
In the defense sector, Textron’s military sales have seen significant growth, particularly with the FLRAA program. The company is optimistic about accelerating the delivery schedule, which could enhance future profitability. However, the termination of certain unmanned programs by the Army presents a potential challenge. These mixed signals, with both positive growth prospects and some setbacks, contribute to the Hold rating as the company navigates these dynamics.
Khanna covers the Industrials sector, focusing on stocks such as Boeing, General Dynamics, and L3Harris Technologies. According to TipRanks, Khanna has an average return of 17.8% and a 73.60% success rate on recommended stocks.
In another report released on July 17, Morgan Stanley also maintained a Hold rating on the stock with a $86.00 price target.