Q2 STOCKS TO BUY

Analyst: Textron Stock Has "Robust Business Momentum"

Year-over-year, TXT is already up more than 84%

Digital Content Manager
Aug 31, 2021 at 10:44 AM
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Textron Inc. (NYSE:TXT) is up 1.8% at $73.26 this morning, after the security earned an upgrade from Cowen an Company to "outperform" from "market perform," as well as a price-target hike to $95 from $75. The analyst in question said the firm expects robust business momentum and improved long-term potential for the company's business jets. Plus, Textron's unit deliveries are expected to bounce back to pre-pandemic levels or higher in 2022, with additional opportunities to become a key player in the electric helicopter sector. 

The 80-day moving average has been instrumental in the jet stock's climb, containing several pullbacks along the way. More recently, shares scored an Aug. 13, all-time high of $74.79. Year-over-year, TXT is up 84.8%.

Analysts were already optimistic towards Textron stock coming into today, making this bull note all the more impressive. Of the eight in coverage, five maintain a "strong buy," rating, with zero "sells" on the books.

The options pits have been firmly in the bullish camp as well. This is per the equity's Schaeffer's put/call open interest ratio (SOIR), which stands higher than only 6% of readings from the last year. In other words, these traders have rarely been more call biased. Today is more of the same --albeit amid low absolute volume-- with calls trading at double the intraday average. Most popular is the September 75 call, followed by the 80 call in the same series.

 
 

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