Textron ( NYSE: TXT ) was rated as a Market Perform in an initiation report by Bernstein. The positive outlook for business jets and a U.S. Army award on the Future Long-Range Assault Aircraft (FLRAA) “appear priced into the stock,” the security firm’s analysts said.
Bernstein set a target price of $74 a share on Textron ( TXT ). The stock fell 3% to $65.11 a share at 10:42 a.m. ET as the market indexes swooned following a report that showed inflation was higher than forecast.
“We prefer to wait until after the FLRAA decision (late October) as stock risk appears biased to the downside,” Douglas Harned, analyst at Bernstein, said in the report. “We may also gain more clarity on macro conditions.”
Textron Aviation and Bell Helicopters are key drivers of results for Textron, followed by its industrial, systems, finance and electronic aviation units, according to Bernstein.
“A pullback on economic weakness could be an opportunity,” the report said. “Textron Aviation should be more resilient than in prior downturns.”
Seeking Alphsa contributor ZH Advisors rates Textron ( TXT ) as a Buy on private aviation growth . Columnist Edward Ambrose has a Hold rating on Textron ( TXT ) because of the uncertainty with military contracts .
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Textron rated Market Perform in Bernstein initiation report