Street View: Missiles, margins and momentum put RTX in the sweet spot

RTX

Yesterday 14:03

** RTX RTX.N raised its full-year profit and revenue forecasts on Tuesday as sustained demand for commercial aerospace services and military programs pushed its backlog to a record $340 billion and lifted third-quarter results
Median PT of 26 brokerages covering the stock is $232.5, according to LSEG data
     
ENTERING A NEW ORBIT
** Morgan Stanley ("overweight," PT: $240) says "a strong 3Q26 & another guidance raise reinforce a favorable setup into '27 & beyond"
** Morgan Stanley adds that contract wins at Raytheon, the defense unit, are increasingly supporting growth and margin expansion, while performance at Pratt & Whitney and Collins Aerospace continues to improve
** Citigroup ("buy," PT: $240) says RTX is well positioned across both aerospace and defense, supported by strong businesses in each market and potential upside from Collins Aerospace and Raytheon
** RBC Capital Markets ("outperform," PT: $235) says "the margin profile and free cash flow remain opportunities into 2027, and with RTX likely seeing a more pronounced step-up in 2028 from the framework agreements" 
** Barclays ("overweight," PT: $235) says RTX's Collins and Pratt businesses are poised to drive sustained medium-term growth and margin expansion, while Raytheon's missile exposure should help it outpace defense peers
     
     

 (Reporting by Kanishka Ajmera in Bengaluru; Editing by Tasim Zahgi)
 ((Kanishka.Ajmera@thomsonreuters.com))