Shares of Textron (NYSE: TXT) were up in pre-market trading on Tuesday after the industrial conglomerate announced that one of its companies, Bell Textron had been awarded the development contract worth $1.3 billion for the U.S. Army’s Future Long-Range Assault Aircraft (FLRAA) program.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
The initial contract will refine “the weapon system design, sustainment, digital enterprise, manufacturing, systems integration, flight-testing, and airworthiness qualification.”
According to a BNNBloomberg report, Textron beat out the competition from a team from Lockheed Martin Corp. (LMT) and Boeing Co. (BA) for this contract.
The report stated that the U.S. Army intends to replace its Black Hawk and Apache helicopters with the FLRAA by 2030.
According to Jeffries analyst Sheila Kahyaoglu, cited by the Bloomberg report, the stakes were high for Textron’s Bell division as, without this contract, Bell Military revenue was forecasted to fall from $1.8 billion in 2022 to $802 million by 2026.
The top-rated analyst has a Buy rating and a price target of $85 on the stock.
Other Wall Street analysts are cautiously optimistic about TXT stock with a Moderate Buy consensus rating based on four Buys and two Holds.
