Textron (TXT): Assessing Valuation as Defense Wins Highlight Strategic Growth in Military Programs

Textron (TXT) is drawing attention after its Bell division was selected by Marotta Controls for a technology supply contract in the Army's FLRAA program. At the same time, Textron Systems completed delivery of the XM204 Top Attack Munition. Both events underscore Textron’s expanding role in modern military projects, a dynamic that could capture fresh investor interest.

See our latest analysis for Textron.

Textron’s defense wins arrive against a backdrop of moderate momentum. The share price has climbed 5.1% over the last month and stands 11.7% higher year-to-date, but the 1-year total shareholder return is slightly negative at -1.9%. Looking further out, three- and five-year total returns of 37% and 134% hint at enduring growth for long-term holders, even as recent trading has been a little choppy.

If Textron’s latest military contracts have you eager to see what other major players in the defense and aerospace sector are up to, you’ll want to check out the See the full list for free.

With the stock trading at a sizable discount to some analyst targets, and recent defense contracts expanding its backlog, the real question is whether Textron is undervalued or if the market has already priced in future growth.

Most Popular Narrative: 8.6% Undervalued

Textron's most widely followed narrative puts fair value at $92.57 per share, signaling room for upside from the last close at $84.64. Market participants are eyeing growth levers beyond recent contract wins, with financial catalysts that could make current levels attractive if assumptions are met.

The FAA certification of the GE Aerospace Catalyst turboprop engine for the Beechcraft Denali program is set to significantly boost revenue as the program progresses toward completion. This will offer a new product line with expected strong market demand.

Read the complete narrative.

Curious what bold financial forecasts justify Textron’s higher valuation? The future price tag banks on ongoing product launches and expanding profit margins. Ready to see what surprising assumptions power this narrative? Dive in, the numbers just might spark a rethink.

Result: Fair Value of $92.57 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, strained segment profits and exposure to shifting automotive demand could slow momentum. Textron’s future performance remains contingent on operational execution.

Find out about the key risks to this Textron narrative.

Build Your Own Textron Narrative

If you have a different take or want to explore Textron’s numbers firsthand, it only takes a few minutes to craft your own perspective, so why not Do it your way

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Textron.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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