How Will Raytheon (RTN) Stock Be Affected Today by This Analyst Action?

NEW YORK (TheStreet) -- Shares of Raytheon Co. (RTN) are up 0.40% to $101.29 after the company was upgraded to "buy" from "hold" by Stifel Financial.

Stifel said it raised the engineering technology developing and manufacturing company's rating because it can offset lower domestic spending with international growth.

A $115 price target was set for Raytheon.

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Separately,TheStreet Ratings team rates RAYTHEON CO as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate RAYTHEON CO (RTN) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 27.27% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, RTN should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • RAYTHEON CO has improved earnings per share by 6.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, RAYTHEON CO increased its bottom line by earning $5.96 versus $5.66 in the prior year. This year, the market expects an improvement in earnings ($6.90 versus $5.96).
  • The current debt-to-equity ratio, 0.40, is low and is below the industry average, implying that there has been successful management of debt levels.
  • Net operating cash flow has significantly increased by 516.66% to $175.00 million when compared to the same quarter last year. In addition, RAYTHEON CO has also vastly surpassed the industry average cash flow growth rate of -19.68%.
  • You can view the full analysis from the report here: RTN Ratings Report
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