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Analysts’ Thoughts on Raytheon Stock ahead of Its 2Q16 Earnings

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Analyst recommendations

The consensus rating among the 19 analysts covering Raytheon (RTN) hasn’t changed since the beginning of 2016 through July 18, 2016. The stock has 14 “buy” ratings and five “neutral” ratings.

Analysts have, however, upgraded their targets on the stock since the beginning of the year. The average 12-month target price at the beginning of 2016 was $134.35. That has increased to $142.43. At its price level of $138.01 on July 18, 2016, this constitutes a return potential of 3.2%

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Notable target revisions

Among major banks (VFH), RBC Capital Markets (RY), with a “top pick” rating for Raytheon stock, has increased its target price from $133 in the beginning of January to $148 by July 18. The stock closed at $138.01 that day.

The “top pick” rating of RBC Capital Markets represents the analyst’s best idea in the sector. RBC’s analyst Robert Stallard said that Raytheon has the most attractive balance of growth and valuation in the generally improving defense sector (PPA).

JPMorgan Chase (JPM), has an “overweight” rating on RTN stock. It has continued to maintain its target price of $139 since the beginning of the year. Goldman Sachs (GS) has a “sell” rating on the stock and has reduced its target from $79 to $71. Credit Suisse has an “outperform” rating on the stock and has increased its target from $130 on January 4, 2016, to $139 on July 18, 2016.

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