United Technologies  was rising in premarket trading Thursday after coverage of the aerospace and defense company was reinstated by Credit Suisse at outperform with a $164 price target.

The price target represents a potential 26% upside from the stock's closing price Wednesday of $130.47. United Technologies shares were rising 0.4% to $131 in premarket trading.

Analyst Robert Spingarn said he sees "significant and durable value" in the company's business segments, which are being "underappreciated" by the market at large.

United Technologies shares have risen nearly 25% year to date. Earlier this week, the company's Pratt & Whitney segment was awarded a $2.2 billion U.S. defense contract for production of F-135 propulsion systems. 

The company is scheduled to release its third-quarter results on Oct. 22, with Wall Street expecting the company to report earnings of $2.03 per share on revenue of $19.31 billion. 

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