What RTX (RTX)'s Additive Manufacturing Collaboration Means For Shareholders

• Velo3D announced a collaboration with RTX and the Raytheon Technologies Research Center to advance additive manufacturing processes for Aluminum CP1, as part of a U.S. Army initiative supporting Integrated Air and Missile Defense modernization.
• This project not only supports the Army’s goals for system agility and operational readiness, but also aims to establish a distributed manufacturing framework across the Department of Defense supplier network.
• We'll explore how RTX's role in advancing additive manufacturing for defense modernization could impact its long-term aerospace and defense positioning.

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RTX Investment Narrative Recap

To be a shareholder in RTX, you need to believe in the company’s ability to maintain long-term leadership in aerospace and defense, driven by sustained defense spending, operational scale, and innovation. The Velo3D collaboration aligns with RTX’s push into advanced manufacturing, but at this stage, it does not materially impact the most immediate short-term catalyst, strong order book momentum and aftermarket growth. The biggest risk remains RTX’s exposure to unpredictable defense budget cycles, which can impact stability in large hardware contract revenues.

Among RTX’s recent announcements, the launch of the MTS-A HD multispectral targeting system is particularly relevant. It further reinforces the company’s edge in defense technology, supporting growth in naval and airborne platforms, a catalyst tied directly to the sector’s order momentum and the company’s robust backlog.

On the flip side, investors should be aware that even as RTX expands partnerships, the risk from volatile defense spending priorities persists...

Read the full narrative on RTX (it's free!)

RTX's outlook anticipates $97.7 billion in revenue and $9.0 billion in earnings by 2028. This is based on a forecast annual revenue growth rate of 5.3%, and represents a $2.9 billion increase in earnings from the current $6.1 billion level.

Uncover how RTX's forecasts yield a $162.50 fair value, in line with its current price.

Exploring Other Perspectives

Eight different fair value estimates from the Simply Wall St Community for RTX cluster between US$117.66 and US$162.50 per share. While forecasts differ, many still point to catalysts like order book strength and aftermarket momentum as critical for future returns, encouraging you to consider a wide array of opinions.

Explore 8 other fair value estimates on RTX - why the stock might be worth 27% less than the current price!

Build Your Own RTX Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your RTX research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.
• Our free RTX research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate RTX's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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