Raytheon Technologies initiated with a Neutral at Citi

Citi analyst Jason Gursky initiated coverage of Raytheon Technologies with a Neutral rating and $104 price target. The analyst is constructive on the outlook for the company and both its commercial and defense end markets over the long-term. However, his estimates also include ramping production of new commercial aircraft to levels articulated by major customers, as well as an acceleration of retirements of older models. This combination could dampen Raytheon’ss ability to expand margins to the level expected by investors and to the levels set out in the company’s longer-term targets, Gursky tells investors in a research note.