Textron Stock Falls After Strike, I Still See Opportunities

Summary:

• Textron’s stock has underperformed, gaining only 9.5% compared to the S&P 500’s 53.6%, due to pressures in its Industrials business and a recent strike.
• EBITDA estimates for Textron have been revised downward, with a 9.7% drop for 2024, affecting future projections and reducing the CAGR from 7.8% to 7.3%.
• Free cash flow estimates have also declined, with a 25.7% drop for 2024, and the CAGR falling from 10.4% to 8.3%, driven by higher labor costs.
• Despite headwinds, Textron stock still carries upside potential, with a revised price target of $99.34 and a buy rating, emphasizing fundamentally driven value.

Textron (NYSE:TXT) is one of the names in aerospace and defense that has not performed to satisfaction. Since I marked the stock a buy in December 2022, share price development has lagged the

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