UPDATE: Oppenheimer Downgrades United Technologies (UTX) to Perform, 2013 Not Looking Good

September 28, 2012 7:01 AM EDT Send to a Friend
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Price: $115.59 -1.17%

Rating Summary:
    8 Buy, 5 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 14 | Down: 28 | New: 51
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(Updated - September 28, 2012 8:21 AM EDT)

Oppenheimer downgraded United Technologies (NYSE: UTX) from Outperform to Perform and removed their $87 price target.

"Our enthusiasm for UTX hinged on the belief that a messy 2012--marked by the acquisition of GR and IAE and various asset dispositions--would position UTC for faster growth and margin expansion in 2013," the analyst said. "We're no longer so sure."

"The industrial businesses are stuck in the funk in China and Europe. The commercial-aero businesses are facing potentially protracted softness in aftermarket. And DoD headwinds could take a bite out of military revenues. We don't see much downside to shares (given ~9% FCF yield in 2013), but neither do we see many catalysts to justify a premium to the current market multiple."

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

Shares of United Technologies closed at $78.35 yesterday.


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