Goldman Sachs Downgrades Textron (TXT) Stock to Neutral

Textron Inc. (NYSE:TXT) is one of the Top 10 Transportation and Industrial Stocks to Buy Now. Goldman Sachs downgraded the company’s stock to “Neutral” from “Buy” with a price objective of $85, down from the prior target of $95, as reported by The Fly. The downgrade comes despite the firm’s belief in tight business jet supply and demand dynamics as well as the potential earnings contribution from Textron Inc. (NYSE:TXT)’s Future Long-Range Assault Aircraft (FLRAA) program win.

Goldman Sachs Downgrades Textron (TXT) Stock to Neutral

A military cargo plane landing at its destination, signifying the strength of its defense arm.

Goldman Sachs highlighted that Textron Inc. (NYSE:TXT) seems to be losing its market share in the business jet segment, with its Systems and Industrial divisions showing limited growth potential. As per the analyst, the business jet fundamentals remain strong, but are no longer incrementally improving. Goldman Sachs also pointed out that while Textron Inc. (NYSE:TXT)’s stock continues to trade at lower valuation multiples versus several of its aerospace and defense peers, this valuation gap has persisted for years, and there is no clear catalyst for a change on the horizon.

In Q1 2025, Textron Inc. (NYSE:TXT) saw robust growth in military and commercial product lines at Bell, while at Aviation, operations improved as the factory progressed towards pre-strike performance levels while ramping production. Furthermore, at Textron Specialized Vehicles, the company completed the sale of the Powersports business, which includes the Arctic Cat brand and its operations.

Textron Inc. (NYSE:TXT) is a leading player in the broader industrial sector since it operates throughout several critical areas of this sector, including aerospace, defense, and manufacturing.

While we acknowledge the potential of TXT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TXT and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.