TXT - Textron rated Buy in new research coverage at Citibank

2023-07-06 10:04:05 ET

Textron ( NYSE: TXT ) on Wednesday was rated as a Buy in new research coverage by analysts at Citibank. They said the industrial conglomerate is poised to benefit from rebounding demand for aircraft including private planes.

The company’s growing aviation backlog “is set against valuation that appears to be pricing in a recessionary environment that negatively impacts the outlook for business jet demand,” Jason Gursky, analyst at Citibank, said in a July 5 report. “We are more bullish given increased adoption of private travel post-pandemic and tight supply throughout the industry that has stretched lead times to more than two years.”

Citibank set a 12-month price target on Textron ( TXT ) of $90 a share, applying a price-to-earnings multiple of 15 times its forward 12-month estimate a year from now. Textron's aviation brands include Cessna, Beechcraft and Bell helicopters.

“Shares are trading at a 36% discount and already appear to be pricing in a recessionary environment that negatively impacts the aviation and industrial segments,” according to Citibank.

Seeking Alpha contributor Normad Capital rates Textron ( TXT ) as a Buy based on its valuation . Columnist Dhierin Bechai has a Buy rating on Textron ( TXT ) for several reasons including its contract with the Pentagon for next-generation rotocraft .

More about Textron

• Textron said to be seeking sale of Kautex fuel-tanks business
• Textron reports mixed results for Q1, expects rebound at Bell

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