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Investing.com - UBS upgraded Textron (NYSE:TXT), the $14.17 billion aerospace and defense company, from Sell to Neutral on Monday, raising its price target to $88.00 from $73.00. According to InvestingPro data, the company maintains solid financials with a current ratio of 1.84.
The upgrade reflects UBS’s observation that business jet demand remains healthy, while Textron has divested its challenged Powersports business from its portfolio.
UBS noted that Bell margin expectations have reset lower, and the firm sees limited downside risk to consensus estimates for 2025 and 2026.
Aviation orders have held up better than UBS anticipated over the past year, and while the firm still sees oversupply risk, it no longer expects a near-term cyclical decline as backlog provides additional buffer.
The stock currently trades at more than one standard deviation discount to its historical valuation and has underperformed recently, while improving supply chain conditions could enable higher Aviation margins, presenting what UBS views as a more balanced risk/reward profile over the next twelve months.
In other recent news, Textron Inc . reported strong second-quarter earnings for 2025, surpassing analyst expectations. The company achieved an earnings per share (EPS) of $1.55, which was higher than the projected $1.45. Revenue for the quarter reached $3.7 billion, exceeding forecasts by 1.65%. In another report, Textron’s diluted EPS was noted at $1.35, again surpassing the consensus estimate of $1.25, with revenue coming in at $3.72 billion against expectations of $3.64 billion. Despite these robust financial results, Textron’s stock experienced a slight premarket decline. On the analyst front, Bernstein SocGen Group reiterated its Market Perform rating for Textron, maintaining a price target of $90.00. These developments highlight Textron’s ability to exceed market expectations in recent quarters.
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