The Dividend Daily

Defense contractor Raytheon Company (RTN) saw its earnings estimates lowered on Wednesday by analysts at Bank of America/Merrill Lynch.

The analysts said it has lowered its 2010 and 2011 EPS estimates for RTN to $5.00 and $5.40, respectively. It maintained its “Buy” rating and $62 price target on the stock, however.

Raytheon shares, which closed at $48.36 on Tuesday, rose 47 cents, or +1%, in morning trading Wednesday.

The Bottom Line
We have avoided shares of RTN since our early June coverage began last year, when the stock was trading at $60. The company has a 2.56% dividend yield, based on last night’s closing stock price of $48.36. The stock has technical support in the $40-$43 price area. If the shares can firm up, we see overhead resistance around the $52.50 price levels. We would remain on the sidelines for now.

Raytheon Company (RTN) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.