Textron (TXT) PT Lowered to $34 but Cowen Sees Upside Potential in the Coming Years

Cowen analyst Cai Von Rumohr lowered the price target on Textron (NYSE: TXT) to $34.00 (from $53.00) but maintained an Outperform rating due to the company's strong balance sheet and the belief it has upside potential beyond 2020 from the FLRAA/FARA helicopter bids.

The analyst stated "TXT's Q1 good news was selection to compete vs. LMT for the potentially transformative future Army helicopter programs. The larger is FLRAA, a replacement for the Blackhawk troop transport. It has $38B+ potential for 700 helicopters (>2x the size of mainstay V-22) with a Q4:21 downselect; and TXT's V-280 is a proven derivative of the V-22, while the LMT/BA SB-1 is new technology. Similarly, TXT's entry for the $8B FARA scout helicopter, the Invictis, is based on existing components vs. LMT's all-new Raider. It has a 2024 award target".

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