Raytheon downgraded as Credit Suisse curbs its enthusiasm for defense


John Tlumacki | The Boston Globe | Getty Images

The patriot missile is manufactured at Raytheon’s Integrated Air Defense Center in Andover, Mass.

The hot trade in aerospace and defense – including that of industry leader Raytheon – is coming to an end, according to Credit Suisse, which downgraded both the sector and the company to neutral on Tuesday.

“After six consecutive years of relative outperformance, defense hardware stocks have reached valuation multiples not seen since 2001. But whereas in 2001 those multiples were deserved in light of the beginning of a major land war and the end of an industry consolidation wave, today’s market appears to have gotten ahead of itself,” wrote analyst Robert Spingarn.

The team of Credit Suisse analysts demoted a slew of defense stocks Tuesday as a part of the sector rerating including Raytheon, the $60 billion company responsible for producing the Tomahawk cruise missile.

Source link

Products You May Like

Articles You May Like

Don’t take your cue on all of retail from Macy’s
Chinese foreign direct investment to the US falls in 2018: Data
Citigroup earnings Q4 2018
Getting rid of debt is a pressing issue for Gen X and younger boomers
What you need to know about your 2018 return

Leave a Reply

Your email address will not be published. Required fields are marked *