RBC starts coverage of Raytheon Technologies with 'outperform', Street high PT

US Aerospace

08/04/2022 12:21

** RBC starts coverage of U.S. aerospace and defense firm
 RTX.N  with "outperform" rating and a price target of $125, the
highest on Wall Street
    ** Brokerage says RTX is establishing a new standard for
end-market exposure that will benefit from stronger defense
fundamentals as well as the commercial aerospace recovery
    ** Says recent stock strength shows the fact that ~65% of
co's sales and ~85% of its profits are from defense markets
    ** As commercial aerospace markets continue to recover,
brokerage expects RTX to benefit from its strong position in
both commercial aerospace original equipment and aftermarket
segments
    ** "We estimate higher margin commercial aftermarket sales
will grow from $14 bln in 2021 to $26 bln in 2025" - RBC
    ** Brokerage says the defense business will provide a floor
to sentiment and valuation on stock
    ** Of 23 brokerages covering the stock, 19 rate "buy" or
higher and 4 "hold"; median PT: $108.50 - Refinitiv
    ** Stock has risen 17.3% this year, as of last close

 (Reporting By Geetha Panchaksharam)
 ((geetha.panchaksharam@thomsonreuters.com))