Textron (TXT) PT Lowered to $99 at CFRA

CFRA analyst Stewart Glickman lowered the price target on Textron (NYSE: TXT) to $99.00 (from $112.00) while maintaining a Buy rating.

The analyst commented, "Our 12-month target price of $99, cut $13, reflects a 14x multiple of our projected 2025 EPS estimate, in line with TXT's historical forward average. We cut our 2024 EPS estimate by $0.03 to $6.28 and 2025's by $0.10 to $7.10. Q1 EPS of $1.20 vs. $1.05, missed the consensus view by $0.03. Revenues grew 3.7% in Q1 year-over-year, led by the Bell segment (up 17%), but offset by weakness in Industrials (down 4%). TXT has boosted its planned restructuring to a revised pre-tax range of $165M-$170M (previously: $115M-$135M), partly due to concerns over the weakness in Industrial. Nonetheless, Aviation looks solid, with backlog growth in Q1 to an updated $7.3B, and Bell segment backlog is now $4.5B. Shares are down about 9% today, which we think is attributable in part to the Industrial weakness as well as the termination of a U.S. Army program. However, TXT has other irons in the fire for Department of Defense-related work and we think a bullish story on Aviation and Bell remains intact."

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