Analysts lifted their RTX fair value estimate by about $12 to $214.54, citing refreshed models that reflect slightly higher revenue growth and profit margin assumptions, as well as updated P/E expectations, alongside a wave of recent price target increases across the Street.
Analyst Commentary
Street research on RTX has been active, with several firms updating their models, price targets and sector views. Here is how recent commentary breaks down for you as an investor looking at valuation, growth and execution risk.
Bullish Takeaways
- Bullish analysts have lifted RTX price targets across multiple research updates, which aligns with the higher fair value estimate and points to renewed confidence in the company’s earnings power and P/E support.
- Some research highlights RTX within the aerospace and defense group, and Morgan Stanley naming it a Top Pick in Aerospace signals that a portion of the Street sees the company as relatively well positioned compared with sector peers.
- The Citi price target move to $227 from $211 follows updated estimates for the aerospace and defense group, suggesting RTX is being modeled to hold its own within a sector that these analysts expect to carry momentum into the first half of 2026.
- Repeated upward revisions to RTX specific targets from multiple research notes indicate that bullish analysts are comfortable refining their models higher rather than treating the stock as fully valued at prior levels.
Bearish Takeaways
- One research piece focused on how potential restrictions on share repurchases in 2026 to 2027 could affect large defense primes, with RTX included among companies where reduced buybacks may weigh on capital return and support for the share price.
- In that same work, RTX was ranked after several peers in terms of estimated impact from no buybacks, which still implies some sensitivity in RTX’s equity story to financial engineering rather than purely to operating performance.
- Another research note on RTX kept a Market Perform rating alongside a modest price target revision, signaling that not all analysts see a clear path for outperformance even with higher targets and sector momentum mentioned for 2026.
- The variety of rating stances, from Buy to Market Perform, underlines that some bearish analysts remain cautious on execution and valuation, and are not yet ready to treat the recent wave of target changes as a clear upside signal.
What's in the News
- RTX reported that from October 1, 2025 to December 31, 2025, it repurchased 0 shares for $0, and that it has now completed the repurchase of 112,659,000 shares, representing 7.79% of shares for $10,380.8m under the buyback announced on October 24, 2023 (company buyback update).
- Pratt & Whitney and Vietjet Air announced an additional order for 44 GTF powered Airbus A320neo family aircraft, bringing Vietjet's total to 137 GTF powered jets, with deliveries scheduled to start in July 2026, alongside a 12 year EngineWise Comprehensive maintenance agreement (client announcement).
- RTX issued full year 2026 guidance, indicating expected organic sales growth of 5% to 6% for the period (corporate guidance).
- Raytheon entered a collaboration agreement with Amazon Web Services to use cloud, AI and machine learning tools to support satellite data processing, mission control, and command and control solutions for space customers (client announcement).
Valuation Changes
- Fair Value: raised from $202.83 to $214.54, representing a moderate step up in the modelled estimate.
- Discount Rate: moved slightly lower from 7.83% to 7.77%, which gives a bit more weight to future cash flows in the valuation work.
- Revenue Growth: adjusted from 5.57% to 5.92%, reflecting a modestly higher sales growth assumption in the refreshed model.
- Profit Margin: refined from 9.10% to 9.32%, indicating a small shift toward stronger profitability in the long-run assumptions.
- Future P/E: trimmed slightly from 37.77x to 37.58x, suggesting a marginally more conservative multiple despite the higher fair value estimate.
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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.