Stifel Nicolaus Upgrades Textron to Buy (TXT)

Stifel Nicolaus is out with its report today on Textron TXT, upgrading shares of TXT from Hold to Buy. In a note to clients, Stifel Nicolaus writes, "We are revising our rating on TXT shares upward to Buy from Hold and establishing a 12-month target price of $32. Our target is based on an EV/2012E manufacturing operation EBITDA multiple of 8x and then assessing a penalty of $300 million to account for a discount we think is likely the maximum amount that would be taken in a sale of the non-captive finance receivables if they were sold or otherwise liquidated today." Shares of TXT closed Friday at $25.50.