Barron's: Hot hand in cybersecurity could lift Raytheon shares another 30%

Raytheon (RTN +1.2%) rose 57% last year and 10% YTD but shares could add another 30%, according to a Barron's weekend profile, after a string of high-margin foreign contract wins, a stabilized U.S. defense budget, strong cash flow, vastly improved pension finances, a 10% dividend hike, and stock buybacks.

RTN looks especially inexpensive because demand for its electronics is soaring, aided by the growing interest in cybersecurity worldwide; as spending on new ships and aircraft is cut, older fleets are being upgraded less expensively with more advanced electronics - "It's hard to be hotter than defense electronics right now," says one analyst.

Also, rising global tensions have lifted demand for RTN's missile systems from governments all over the world; RBC Capital notes RTN's international exposure is more than twice that of other major defense contractors.

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