Raytheon is upping its savings target

Article Excerpt

RAYTHEON TECHNOLOGIES CORP. $87 is a buy. The company (New York symbol RTX; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.5 billion; Market cap: $130.5 billion; Price-to-sales ratio: 2.2; Dividend yield: 2.3%; TSINetwork Rating: Above Average; www.rtx.com) took its current form on April 3, 2020, with the merger of United Technologies Corp. (old symbol UTX) and Raytheon Co. (old symbol RTN). It’s now a leading maker of commercial aircraft equipment, electronic systems for military aircraft and radar systems, and guided missiles. So far, the merger with United Technologies has cut $200 million from the combined company’s annual costs. Raytheon now expects annual savings of $1.3 billion by the end of the fourth year. That’s up $300 million from its original target. For 2021, Raytheon should earn $3.82 a share. The stock has gained over 50% since the merger, but still trades at a reasonable 22.8 times that forecast. The company is also raising its quarterly dividend by 7.4%, to $0.51…