Shares of aerospace and defense company Textron (TXT) are being unnecessarily weighed down by its outsized research and development spending. An activist investor could help change all that, says Hedgeye Industrials sector head Jay Van Sciver.
“When you look at how investors view Textron, if you had a double-digit operating margin, they would definitely see it differently,” Van Sciver explains in the clip above.
“[R&D spending] is a major drag on profits and EPS right now. It’s very clear to me that this has been a troubled R&D process.”
Watch the 2-minute video above for more.