Goldman Sachs Downgrades Raytheon (RTN) to Sell; Risk To Back-End Loaded 2012

May 24, 2012 10:56 AM EDT
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Price: $146.91 --0%

Rating Summary:
    18 Buy, 8 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 7 | Down: 8 | New: 1
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Goldman Sachs downgraded Raytheon (NYSE: RTN) to Sell with a price target lowered from $52 to $45.

Analyst, Noah Poponak, said, "Lowest FCF yield and the consensus long in large-cap Defense: We think RTN is the consensus long amongst the primes due to international and intel exposures, but its organic growth, orders, margin resiliency, and cash generation have all been very similar to peers."

"...we see risk that some of the expected back-end loaded 2012 order flow investors are looking for slips in to 2013. We also have concern that RTN’s orders and backlog are shifting towards its lower margin segments, which could drive total company margin pressure going forward."

For an analyst ratings summary and ratings history on Raytheon click here. For more ratings news on Raytheon click here.

Shares of Raytheon closed at $50.26 yesterday.

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