Goldman Sachs Downgrades Textron to Neutral, Cites Stalled Upside Despite Solid Fundamentals

Goldman Sachs downgraded Textron (NYSE:TXT) to Neutral from Buy, setting a price target of $85, as the firm grows cautious on the stock’s ability to deliver further gains despite ongoing strengths in key business areas.

Goldman acknowledged that Textron’s core investment thesis—tight supply and demand dynamics in business jets and the earnings boost from its Future Long-Range Assault Aircraft (FLRAA) contract win—remains intact. However, the analyst noted these positives have been in place for some time without translating into meaningful stock appreciation.

Additionally, Goldman flagged concerns that Textron may be losing market share in its business jet segment, while its Systems and Industrial divisions show limited prospects for growth. Although Textron trades at a discount to peers on valuation multiples, the firm expressed skepticism about catalysts that could drive a rerating in the stock.

The downgrade reflects Goldman’s view that upside potential is now more balanced against risks, leading the firm to step to the sidelines as it awaits clearer signs of share gains or new growth drivers.