Analyst raises price target on Textron

AN ANALYST covering Textron Inc. said the company is poised for a rebound next year, saying its aviation division will be a "key driver" of growth.
 / COURTESY BELL HELICOPTER
AN ANALYST covering Textron Inc. said the company is poised for a rebound next year, saying its aviation division will be a "key driver" of growth. / COURTESY BELL HELICOPTER

PROVIDENCE – A Robert W. Baird & Co. analyst has raised his price target on Textron Inc., saying the company, which specializes in aerospace, defense and security, is poised for a rebound next year.
Baird senior research analyst Peter J. Arment on Dec. 22 raised the price target to $60 from $48.

Arment’s note states that Textron Aviation accounts for 36 percent of the company’s total sales, but it is the “key driver” for sentiment in the stock.
“We believe investors should continue to build positions in TXT reflecting trough earnings for both Bell and Textron Aviation with significantly higher earnings likely over the next few years,” he wrote.

Arment said he expects the “long downturn” in business jets will end next year and the company’s refreshed portfolio puts it in a better position.
Textron reported a 139.2 percent jump in profit in the third quarter that ended Oct. 1 compared with the same period a year ago.
The manufacturer said profit rose to $421 million, or $1.55 per share, compared with profit of $176 million, or 63 cents a share, a year ago.

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