Raytheon downgraded to Hold at Jefferies on Defense and P&W concerns

As previously reported, Jefferies analyst Sheila Kahyaoglu downgraded Raytheon Technologies to Hold from Buy with a price target of $110, down from $115. The Collins story is "well appreciated and rather solid," according to the firm, which believes the "biggest questions" are Defense and Pratt & Whitney. In terms of the former, the firm sees a ack of visibility on Defense growth drivers with acceleration already in estimates, and on the latter the firm sees near-term profit headwinds in the Pratt & Whitney business. The firm’s 2025 free cash flow forecast stands at $7.1B, versus the company’s roughly $9B target, Jefferies noted.