Analysts have raised their price target for RTX from $166.56 to $175.33 per share. They cite stronger-than-expected segment results and improving industry outlooks as key factors behind the increase.

Analyst Commentary

Recent research updates reflect a nuanced perspective on RTX's outlook, with both optimistic and cautious viewpoints shaping valuation and growth expectations.

• Bullish analysts point to broad-based strength across RTX's three operating segments, indicating robust execution and adaptability in core business lines.
• Upward revisions to price targets reflect confidence in RTX's improving industry positioning and ability to navigate tariff impacts. Expectations for growth are reinforced by increased defense spending and commitments from NATO countries.
• Improved outlook on tariff-related costs suggests that management is effectively managing external challenges within updated guidance for the coming year.
• New mandatory U.S. defense budget allocations, as well as continued resource support for Ukraine, are seen as significant tailwinds that bolster long-term revenue visibility and resilience against market volatility.

• Bearish analysts maintain some caution regarding tariff and product mix headwinds, which have led to a downward adjustment in RTX's 2025 adjusted EPS outlook.
• Although longer-term forecasts remain intact, there are concerns that cost pressures could weigh on short-term margins and limit potential near-term upside.
• Continued EPS sensitivity to external factors, such as tariffs and evolving geopolitical tensions, underscores the need for vigilant risk assessment.

What's in the News

• The Pentagon is urging missile suppliers, including RTX, to significantly increase missile output to address concerns over a possible future conflict with China (WSJ).
• European airports experienced widespread disruptions after hackers targeted check-in and boarding systems using software from Collins Aerospace, an RTX company (Reuters).
• The U.S. Defense Secretary has called an urgent meeting of top military commanders, highlighting the increased focus on national defense and the role of major contractors such as RTX (WaPo).
• Due to U.S.-China trade tensions, China has limited exports of critical minerals. This has resulted in production delays for Western defense companies, including RTX (WSJ).
• The U.S. is moving to ease restrictions on international sales of advanced military drones, creating new opportunities for manufacturers like RTX (Reuters).

Valuation Changes

• Consensus Analyst Price Target has risen from $166.56 to $175.33 per share, reflecting a modest upward adjustment in fair value estimates.
• Discount Rate has increased slightly, up from 8.09% to 8.15%. This indicates a marginal uptick in perceived risk or required return.
• Revenue Growth projections have risen fractionally, moving from 5.38% to 5.39%. This suggests stable but slightly improved sales prospects.
• Net Profit Margin expectations have decreased marginally, dropping from 9.30% to 9.12%. This points to slightly lower anticipated profitability.
• Future P/E Ratio has increased from 31.47x to 33.84x, indicating expectations for stronger forward earnings growth or a willingness to pay a higher premium for RTX shares.