The consensus rating for United Technologies (UTX) among the 20 analysts listed on Bloomberg has changed slightly since the beginning of the second quarter on April 1, 2016.
The analysts from Goldman Sachs (GS) and RBC Capital Markets (RY) changed their ratings on UTX from “buy” to “hold” by the end of the quarter on June 30. On June 30, ten analysts each had a “buy” and “hold” rating on the stock.
Notable analyst targets
However, the average 12-month target price increased in the quarter from $106.60 to $111.00 after several major investment banks (IYF) upgraded their targets. Barclays (BCS), which has an “equalweight” rating on the stock, revised its target from $100 in the beginning of April to $108 on June 27.
United Technologies’s stock returns from January 1–June 30, 2016, have been better than the Market. UTX stock returned 7.3% for the half year compared to the S&P 500’s returns of 4.3%.
General Electric (GE) returned a paltry 2.5%, whereas Rockwell Collins’s (COL) stock fell by 6% in 1H16. Based on prices on June 30, UTX had a price-to-current-year earnings multiple of 15.7x. Similar multiples for GE, HON, and COL were 20.9x, 17.5x, and 15.5x, respectively.