RTN – Market expectations are for improving Uniform ROA, and management’s confidence about DeepStrike, their 4-pillar strategy, and Forcepoint sales implies this may be warranted
September 18, 2017
- Raytheon Company (RTN:USA) currently trades at a 14-year high relative to UAFRS-based (Uniform) Earnings, with a 20.2x Uniform P/E, suggesting fairly bullish expectations for the firm. Given management’s confidence about DeepStrike, their 4-pillar strategy, and Forcepoint sales, this may be warranted
- Specifically, management is confident about the potential of their DeepStrike solution, and their 4-pillar strategy. They are also confident that weakness in Forcepoint sales during the quarter was driven by the timing of awards. As such, expectations for the firm to reverse recent declines in Uniform Turns may be warranted, and equity is likely fairly valued