NYSE:UTX

United Technologies (UTX)

169.65
+0.85 (0.50%)
as of Oct 7, 2025, 6:04:03 pm Market Open.
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He's not certain if they've gone the split route. If this is the case, it's probably not the best move to make. It's one of the huge conglomerates from the 1960s and they probably need to split up.
PAST TOP PICK
(A Top Pick Jul 25/19, Up 1%) UTX will merge with Raytheon then spin off its HVAC and elevator businesses. They will create value with that merger, which will unlock value of 30-40% over the next two years.
DON'T BUY
An industrial type conglomerate. They have performed well in the last couple of years. Well diversified. If it keeps moving down to $100, would look more closely at it.
COMMENT

They agreed to a merger with UTX-N and will form a really interesting industrial as they spin off OTIS, their carrier division, and have in the past spun off Goodrich. IIS with Raytheon is growing very, very rapidly. It is a very interesting opportunity.

PAST TOP PICK

(A Top Pick Aug 08/18, Down 1%) UTX-N is a diversified company in the aerospace, HVAC and elevator space. They will spin off some of these holdings and plan to merge with RTN-N. This may have caused some confusion in the investors mind. She thinks the some of the parts is worth more the share price today. She likes the reoccuring revenues that goes with the service contracts.

DON'T BUY
It'll get killed in a recession; capital spending will go south. AC, elevators and advanced avionics for civil and military use will grow. Defense systems will use more and more advanced electronics. They had good, not stellar, earnings. The stock hasn't been bad. This is too cyclical for his tastes--not a good time to buy it.
TOP PICK
Plan to break up 3 main platforms, and merge aerospace with Raytheon. Can easily see valuation of 30-40-50% above where it currently is. Yield is 2.15%. (Analysts’ price target is $154.40)
TOP PICK

They are spinning off OTIS and Carrier. Their aircraft engine business will have a new engine next year for A320s and F35s. The share price has been held back somewhat. She likes their business model. (Analysts’ price target is $152.41)

BUY
The defense and aerospace sectors he really likes. There has been very, very good secular growth there and it will continue to consolidate. He would be a buyer of the stock right here.
DON'T BUY

The industrials are overpriced. He was excited about the Raytheon deal, but the market doesn't like it. $106.46 is his model price. There's better value elsewhere. Around $105 is interesting. Too expensive now.

BUY

Right now UTX-N is a nice buying opportunity. They will spinoff some assets and will be involved with RTN-N in a merger, which will create some great opportunities. They sell original equipment with service contracts attached to generate good margins for 10 years or more. This makes them more defensive.

COMMENT
A great company. You've done well if you have owned this for a long time. The combination with Raytheon will raise competition issues. Will this be a meaningful merger; how will it benefit UTX as an industrial company? They should be two separate entities. The merger will reduce organic growth opportunities for UTX. Depending on who the market deems the acquirer, one of these will sell off.
COMMENT
Going to focus on becoming in the aerospace and split off the carrier division and the OTIS elevator division. Exciting story.
PAST TOP PICK
(A Top Pick May 08/18, Up 12%) She has long held this. Aerospace, Otis Elevators and building products are their three sectors. 45% of their revenue stream is after-market, a recurring revenue stream (e.g. servicing Otis elevators or engines which are high-margin servicing contrcsts). This is defensive in an economic slowdown. They had a strong Q1 and raised their guidance, which they rarely do in Q1. Boasts 16x forward earnings.
SELL
It's currently pausing at $142, a level of resistance. He would sell it now, given the potential of falling.