United Technologies (UTX) Stock Gains on Potential Sikorsky Sale

NEW YORK (TheStreet) -- United Technologies (UTX) shares are up 0.55% to $116.94 in early market trading on Wednesday as executives at the company prepare to meet later this week to review options for the potential sale of its $8 billion Sikorsky helicopter manufacturing business, according to Reuters.

The company is looking to either sell the business to Textron (TXT), which expressed interest in buying the business earlier this month, or spin it off, according to Reuters sources.

The Textron sale would be facilitated through a Reverse Morris Trust, a transaction that would allow United Technologies to avoid paying taxes on the sale.

Alternatively, United Technologies could opt for just a straight up sale to another company such as Lockheed Martin (LMT) or Boeing (BA).

TheStreet Ratings team rates UNITED TECHNOLOGIES CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate UNITED TECHNOLOGIES CORP (UTX) 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 impressive record of earnings per share growth, increase in net income, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel its strengths outweigh the fact that the company shows low profit margins."

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