CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
Our 12-month target price of $99, raised by $9, reflects a 16.2x multiple of projected 2025 EPS, in line with RTX’s historical forward average. We cut our 2024 EPS estimate by $0.58 to $5.39 and start 2025’s at $6.12. Q4 EPS of $1.29 vs. $1.27, beat the consensus view by $0.04. Organic sales rose 10%, led by Pratt & Whitney (+4%), as commercial aerospace remains a nice tailwind, both for new orders as well as aftermarket. We still see a few clouds on the horizon on the supply chain front, and we see only modest EPS improvement in 2024 before accelerating earnings in 2025. There are some headwinds at Raytheon, notably on fixed price contracts that have underperformed in a rising cost environment, but we expect these to be less influential in coming periods. Shares yield 2.6%, adding to total return potential. We estimate a 2024 payout ratio of about 44%, which we think is sustainable.