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5 Textron (TXT) Management Meeting Takeaways - Jefferies

March 7, 2022 8:00 AM EST
Get Alerts TXT Hot Sheet
Price: $95.93 -0.33%

Rating Summary:
    15 Buy, 6 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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Jefferies analyst Sheila Kahyaoglu reiterated a Buy rating and $90.00 price target on Textron (NYSE: TXT) after meeting with management and the Aviation team in Wichita, KS which yielded 5 key takeaways:

1) Aviation backlog (~40% of 2022 total co sales) is supported by new entrants as 20% of retail buyers are first-time owners w/ strongest used market
2) SkyCourier and Denali next adding an incremental $90MM in our model by 2024 w/ shipments EIS slated for H1:22 and 2023 respectively
3) Refreshes such as the CJ4 Gen 2 support demand, w/ go-fwd investment on mods vs clean sheet given a decade of investment
4) Five price increases in 2021
5) Submitted add-ons to FLRAA RFP w/ decision slated for end-June/July

The analyst stated "Robust Demand for Biz Jets Continues w/ Aviation backlog of $4.1BB that has expanded 156% y-o-y. The market has been supported by an expanding customer base, w/ 20% first-time buyers. Additionally, used aircraft for sale at an all-time low at 2.4% of the total fleet for sale vs. a 1-yr avg of 4.1%. The sanctions on Russia impact a handful of aircraft, turboprops and commercial helo, but likely minimal."

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

Shares of Textron closed at $71.23 yesterday.



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