Raytheon (RTN, $180.18) drop -3%, on UBS downgrade

Raytheon shares declined about -3% Wednesday, following a downgrade by a UBS analyst.

Analyst Myles Walton lowered his rating on the defense contractor’s stock to neutral from buy, while also reducing his 12-month price target to $200 from $220.

Walton mentioned in a note to clients that Raytheon already has outperformed the large-cap defense average by around 900 basis points this year, and that it is already below average free cash flow yield for 2019 and 2020. 

In February, Raytheon reported its revenue falling short of expectations, and also expressed a cautious guidance.

However, Raytheon’s upcoming projects might indicate a ray of hope for the firm. On Tuesday, the company announced that the U.S. Air Force Life Cycle Management Center and a consortium of tech firms led by Raytheon would be collaborating on modernizing the Space Defense Operations Center, which is a 1990s system that monitors space debris.

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Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.