The consensus rating among the 19 analysts covering Rockwell Collins (COL) leans toward a “buy” call. The number of “buy” calls has decreased from 12 in the beginning of January 2106 to 11 by July 14, 2016.
The number of “neutral” ratings increased from six to seven, and the “sell” recommendation has been stagnant at one. The average 12-month target price on the stock at the beginning of the year was $98, which has decreased to $96. At its price level of $85.82 on July 14, this constituted a return potential of 12%.
Notable target revisions
Among the major banks (VFH), J.P. Morgan (JPM) has a “neutral” rating for Rockwell Collins’s (COL) stock. JPM reduced its target from $98 in the beginning of January to $92, which is higher than the July 14 market price of $85.82.
Barclays (BCS), which has an “overweight” rating on the stock, reduced its target from $101 to $98 in the same period. Goldman Sachs (GS) has a “sell” rating on the stock and has reduced its target from $79 to $71. UBS has maintained its target of $100 since the beginning of the year and has a “buy” rating on Rockwell Collins.
In the last eight quarters, Rockwell Collins (COL) has managed to beat earnings estimates six times and revenue estimates only three times. As a result, Rockwell Collins has a poor record of matching revenue estimates in recent quarters.
In comparison with its aerospace (XAR) peers, United Technologies (UTX) has beaten earnings estimates every time in the last eight quarters and revenue estimates six times in the same period. Similarly, Honeywell (HON) has managed to eclipse earnings estimates seven times and revenue estimates six times in the last eight quarters.