Textron Inc. (NYSE:TXT) seems poised to benefit from improvement in the business jet market and the industrial and commercial helicopter segments, according to Goldman Sachs.
The Textron Analyst: Noah Poponak upgraded the rating for Textron from Neutral to Buy, while raising the price target from $45 to $71.
The Textron Thesis: A sharp decline in the used inventory available for sale in recent months indicates an improvement in the business jet market, “especially in Textron’s aircraft categories and for Cessna aircraft specifically,” Poponak said in the upgrade note.
“We expect this to translate to order growth and higher pricing at Cessna over the coming quarters,” he added.
The analyst expects Textron’s industrial and commercial helicopter segments to benefit from a broad economic recovery.
“We see substantial upside to consensus earnings estimates, investor expectations appear low, and valuation levels are among the lowest in our coverage,” he wrote further.
TXT Price Action: Shares of Textron had risen by 1.03% to $57.66 at the time of publication Thursday.