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.