Goldman Sachs Resumed Coverage on United Technologies with a "Neutral" Rating (UTX)

Goldman Sachs Resumed Coverage on United Technologies with a “Neutral” Rating (UTX)

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United Technologies Corporation (UTX) is now rated as “Neutral” at Goldman Sachs as the firm resumed coverage on the building systems and aerospace products manufacturer.

The analysts value UTX at $84, a +5% upside from Tuesday’s closing price of $80.14.

“We believe UTX is a high quality company, well positioned for long-term emerging market driven growth, and that the second derivative in key end markets (aerospace aftermarket, China, construction) is turning,” a Goldman Sachs analyst said. “However, medium-term total earnings growth is likely to be slower than most of our Commercial Aerospace coverage while valuation is ahead, the stock’s defensive characteristics may lead it to underperform in a mid-cycle period (as they have in the past), and there are a few outsized execution risks.”

United Technologies shares were flat in premarket trading on Wednesday. The stock is up +9.78% year-to-date.

The Bottom Line
Shares of United Technologies (UTX) have a 2.67% dividend yield, based on last night’s closing stock price of $80.14. The stock has technical support in the $75-$76 price area. If the shares can firm up, we see overhead resistance around the $82-$84 price levels.

United Technologies Corporation (UTX) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 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.

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