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Raytheon Shares Drift Lower on UBS Downgrade

M. Corey Goldman

Raytheon stock was down about 3%, or $5.59, at $180.25 in trading on the New York Stock Exchange after UBS analyst Myles Walton downgraded the company's stock to neutral from buy and lowered his 12-month price target to $200 from $220. In a research note to clients, Walton said Raytheon's relative valuation "is no longer compelling" given the company already has outperformed the large-cap defense average by roughly 900 basis points this year, and that it is already below average free cash flow yield for 2019 and 2020. Raytheon in late February revealed a miss on revenue and provided cautious guidance, based in part on uncertainty over defense spending.