On Tuesday, December 19th at 12:30pm ET, Defense Policy head, LtGen Emerson "Emo" Gardner USMC ret., will be collaborating with Industrials analyst, Jay Van Sciver to provide a multifaceted view of Textron’s (TXT) longer-term prospects. We will specifically look at why Textron has lagged some of its peer defense primes outstanding performance and the potential for a 60% improvement in share price.
Jay's activist (or self-help) thesis for Textron is straightforward: TXT has spent nearly double the sector's average on R&D and received little return for it. He believes R&D could be cut to comparable industry levels with the retained R&D spend better deployed in buybacks. Jay says that such actions could generate a share price north of $80/share … up over 60%.
We'll discuss TXT's product line for both its defense and non-defense customers and where those programs stand as the current Defense budget battle comes to some sort of a dramatic conclusion this week. We'll cover the state of play of the Air Force's Light Attack aircraft demonstration and the Army's Future Vertical Lift Program intended to eventually replace 3,000 H60 Blackhawks. Those DoD programs are critical to the future of Textron's self-financed Scorpion light jet development, its AT-6 Texan trainer aircraft and Bell's exciting V-280 technology.
Hedgeye Defense Policy subscribers will be sent the dial-in information and the presentation materials on Tuesday before the call. We hope you can join us live on Tuesday at 12:30pm, but if not, a replay can be sent shortly after the call. Please feel free to send questions in advance to
Defense Policy Subscribers: CLICK HERE for event details (includes video link, materials link and dial-in).