Textron: Quietly Lining Up A Q1 Beat

Textron (TXT) is set for a Q1 earnings beat, driven by strong Textron Aviation growth and a ramping Bell segment, with the MV-75 helicopter program. TXT trades at a discount to pure-play A&D peers, despite similar profit streams and a clean balance sheet, with minimal leverage. I model $1.42 Q1 EPS, versus street at $1.30, with upside to $118/share (34% upside) on 17.5x multiple and $6.75 EPS this year.