Zacks Investment Research downgraded shares of Textron Inc. (TXT) from NEUTRAL to UNDERPERFORM on October 30, 2013, with a target price of $26.00.
We are downgrading our recommendation on Textron Inc. to Underperform from Neutral following the third quarter 2013 results. Earnings were below the Zacks Consensus Estimate and declined 27.1% year over year. The reduced 2013 guidance and weak performance reflect lower contribution from Cessna, as the light-to-midsize business jet market remained soft. Bell also disappointed with soft margins. Textron continues to face defense budget deficits and political uncertainty. Though the company received a number of contracts this quarter, those were not sizeable. In view of the current defense budget uncertainty and the threat of sequestration, we remain apprehensive for the time being.
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