Credit Suisse cuts Raytheon PT on industry slowdown concerns

New Relic

26/10/2022 12:21

** Credit Suisse cuts PT on Raytheon Technologies Corp
 RTX.N  to $83 from $85, citing growth slowdown in aerospace,
defense sectors from macro pressure
    ** Brokerage maintains "neutral" rating; new PT implies a
downside of ~6% on previous close vs old PT's ~4% downside 
    ** Says co's defense segment remains a "trouble spot", with
a drop in quarterly earnings before interest and tax (EBIT) in
both its intelligence and missile units 
    ** Adds military sales even in its aerospace divisions
dropped over the quarter
    ** Still, CS adds that co's commercial aerospace division
experiences continued recovery, with sales growth in both its
engine and aircraft systems manufacturing units 
    ** RTX on Tuesday reported better-than-expected adjusted
quarterly earnings of $1.21 per share vs consensus of $1.14 per
share - Refinitiv IBES  urn:newsml:reuters.com:*:nL8N31Q5IW
    ** At least two other brokerages also slash PTs after co's
Q3 report 
    ** 17 of 23 brokerages rate the stock "buy" or higher and 6
"hold"; median PT is $106 - Refinitiv IBES
    **  YTD, the stock is up ~3% as of previous close
 (Reporting by Anirban Chakroborti in Bengaluru)
 ((Anirban.Chakroborti@thomsonreuters.com;))