Jefferies analyst Sheila Kahyaoglu maintains $Textron (TXT.US)$ with a buy rating, and adjusts the target price from $105 to $100.
According to TipRanks data, the analyst has a success rate of 63.1% and a total average return of 11.6% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Textron (TXT.US)$'s main analysts recently are as follows:
The firm noted that the combined effects of trike impacts and a softening industrial sector contributed to a reduced earnings and free cash flow projection for 2024. Despite these factors, the demand for Aviation continues to be strong, as evidenced by a book to bill ratio exceeding 1.
Textron's third-quarter miss and subsequent reduction in EPS and free cash flow forecasts were attributed to strikes affecting both the third and fourth quarters. However, there's an anticipation of a recovery by 2025, with Aviation revenue projected to surpass the original guidance for 2024 as delivery rates increase. Business jets are considered a significant influencer of the company's share performance. Despite the rise in revenue, with the book-to-bill ratio and backlog diminishing, there is an expectation that cyclical apprehensions will have an impact on the share value.
The recent five-week strike at Textron Aviation's operations in Wichita, KS has affected the delivery schedule for 2024, leading to a reduced EPS estimate for that year. However, with the workforce returning, expectations are set for a recovery that should foster growth in 2025.
Note:
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