United Tech Downgraded To Sector Perform At RBC

By Ciara LinnaneMarketWatch Pulse

United Technologies Corp. stock was downgraded to sector perform from outperform at RBC Capital Markets on Tuesday, with analysts saying a recent rally meant it was time to move to the sidelines. The stock has gained about 10% in the last couple of weeks. The company currently has some growth problems with China still a challenge while underlying trends at its aerospace business are not improving, RBC said in a note. "We're basically looking to US construction and defense for potential organic upside going forward, and these markets only make up 40% of segment operating income (post Sikorsky)," said the note. RBC lowered its price target on the stock to $100 from $113. Shares were not yet active in premarket trade, but are down 17% in the year so far, while the Dow Jones Industrial Average has lost 4%.

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