Our 12-month target price of $121, up $17, reflects a 19x multiple on our projected 2025 EPS. The applied multiple is above RTX’s historical forward average but reflects a view that demand for munitions is going to take a step higher in 2025, as we now think it possible that appropriations for defense will accelerate after the 2024 election (a more optimistic view than we had taken earlier). We keep our 2024 EPS estimate at $5.39 and raise 2025’s by $0.21 to $6.35. RTX’s Raytheon segment (37% of 2023 revenues before intra-segment eliminations) is a major player in munitions. The ongoing wars in Ukraine and Gaza, plus the risk of a partnership between Russia and China, should create appetite for more defense spending, with an emphasis on munitions and shipbuilding, in our view. RTX yields 2.4%, and we estimate a 2025 dividend payout ratio of 40%, which we see as manageable.