Industrial manufacturer United Technologies Corporation (
) on Friday caught a big downgrade from analysts at Oppenheimer
The firm cut its rating on UTX from "Outperform" to "Perform"
and removed its $87 price target from the stock.
An Oppenheimer analyst commented, "Our enthusiasm for UTX hinged
on the belief that a messy 2012-marked by the acquisition of GR and
IAE and various asset dispositions-would position UTC for faster
growth and margin expansion in 2013. We're no longer so sure."
Continuing, "The industrial businesses are stuck in the funk in
China and Europe. The commercial-aero businesses are facing
potentially protracted softness in aftermarket. And DoD headwinds
could take a bite out of military revenues. We don't see much
downside to shares (given ~9% FCF yield in 2013), but neither do we
see many catalysts to justify a premium to the current market
UTX shares fell 75 cents, or -1%, in premarket trading
The Bottom Line
Shares United Technologies (
) have a 2.73% dividend yield, based on last night's closing stock
price of $78.35. The stock has technical support in the $72-$75
price area. If the shares can firm up, we see overhead resistance
around the $82-$83 price levels.
United Technologies Corporation (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.3 out of 5 stars.
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, as well as a detailed explanation of
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