CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We trim our 12-month target to $90 from $94, valuing shares at 15.0x our 2024 EPS estimate (lifted to $5.97 from $5.85; 2023 EPS adjusted to $5.01 from $5.05), a discount to RTX’s five-year forward P/E average of 18.8x. RTX posted adjusted Q3 EPS of $1.25 vs. $1.21 (+3% Y/Y), beating consensus by $0.03. Q3 organic revenues rose 12% Y/Y, driven by RTX’s commercial aviation business as air travel demand remains strong. Commercial aftermarket and originial equipment manufacturer (OEM) sales were both up by double digits (+25% and +26%, respectively). RTX took a sales charge of $5.4 billion in Q3, resulting in an expected $2.9 billion operating profit impact for the Pratt & Whittney powder metal recalls. RTX’s board approved a $10 billion accelerated share repurchase program to capitalize on the stock’s depressed share price – an action we see helping to prop up share performance. We continue to see RTX shares as undervalued at current levels and reiterate our Buy view.