RTX’s (RTX) Pratt & Whitney unit is delivering new full-life disks ahead of expectations and fixing impacted engines faster, while the Raytheon business is likely poised for a turnaround in 2025, BofA Securities said in a note Thursday.
BofA analysts, including Ronald Epstein, took note of better-than-projected execution in servicing contaminated powder-metal discs in geared turbo fan aircraft engines. Pratt & Whitney is fixing affected engines faster to avoid a peak of 650 jets on the ground, according to the analysts.
The company’s Collins Aerospace subsidiary continues to take advantage of higher aftermarket demand and a recovery in wide-body flight volume, while Raytheon’s recent restructuring and management changes “give us more confidence in a turnaround of that business in 2025,” the analysts said.
The brokerage upgraded its rating on the aerospace and defense contractor’s stock to neutral from underperform and raised its price objective to $100 from $78.