Morgan Stanley analyst Kristine Liwag maintains $Textron (TXT.US)$ with a hold rating, and maintains the target price at $90.
According to TipRanks data, the analyst has a success rate of 61.9% and a total average return of 10.2% 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 observed that the combination of the trike impacts and a softer industrial sector contributed to a reduced earnings and free cash flow forecast for 2024. Despite these factors, the Aviation segment showed resilience, with demand remaining strong as indicated by a book to bill ratio exceeding one.
Textron experienced a shortfall in Q3 and revised its EPS and free cash flow forecasts downward, citing the strike's effects on Q3 and Q4 results. However, a recovery is anticipated by 2025, with Aviation revenue projected to surpass the initial 2024 guidance as delivery activities accelerate. The business jet sector is considered to be a significant influence on the company's stock value, with persistent cycle risks anticipated in the long term. As revenue increases and both book-to-bill and backlog metrics decline, cycle-related apprehensions are expected to impact the stock's performance.
The firm noted that a recent strike at Textron Aviation operations in Wichita, KS, has impacted deliveries for 2024, consequently adjusting the 2024 EPS estimate. However, with the workforce resuming operations, the outlook for 2025 is positioned positively for growth.
Note:
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Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
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