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RTX: Missile Demand And Cybersecurity Risks Will Shape A Balanced Forward Outlook

RTX: Missile Demand And Renewed Investment List Inclusion Will Drive Near-Term Performance

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RTX
AnalystConsensusTarget
Not Invested
Published 06 Aug 2024

Update shared on 15 Dec 2025

Fair value Increased 0.44%
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Analysts have nudged their price target on RTX slightly higher to approximately $194.65, reflecting modestly stronger expectations for long term revenue growth and valuation multiples that more than offset a small revision to projected profit margins.

What’s in the News

  • The Pentagon is pressing major U.S. missile makers, including RTX, to double or even quadruple production. This underscores sustained demand tied to potential conflict scenarios in the Indo Pacific region (Wall Street Journal).
  • The U.S. has lifted restrictions on Ukraine’s use of some allied long range missiles. This spotlights RTX’s Raytheon unit as the manufacturer of Tomahawk systems that remain off limits for Ukrainian procurement and deployment (Wall Street Journal).
  • A cyberattack on Collins Aerospace software disrupted check in and boarding operations at several major European airports. This highlights cybersecurity and operational resilience risks for RTX’s aviation systems portfolio (Reuters).
  • Short seller Glasshouse Research alleged that supplier Ducommun’s growth and earnings power are overstated as key customers, including RTX and Boeing, delay shipments. The report points to potential supply chain and delivery frictions around RTX programs (Glasshouse Research).
  • Defense Secretary Pete Hegseth has ordered an urgent gathering of top U.S. military commanders, drawing renewed focus to the role of large defense contractors such as RTX across a range of modernization and readiness initiatives (Washington Post).

Valuation Changes

  • The fair value estimate has risen slightly from approximately $193.79 to $194.65 per share, reflecting modestly stronger long-term assumptions.
  • The discount rate has increased marginally from about 7.85 percent to 7.89 percent, implying a slightly higher required return on equity.
  • Revenue growth has edged higher from roughly 5.21 percent to 5.44 percent annually, signaling a modestly more optimistic top-line outlook.
  • The net profit margin has slipped slightly from around 9.30 percent to 9.24 percent, incorporating a small downgrade to long-run profitability.
  • The future P/E has moved up modestly from about 35.68 times to 35.87 times forward earnings, indicating a marginally richer valuation multiple.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.