RTX

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 […]

RTX Sees FY Adj EPS $5.25-Adj EPS $5.40。

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: Our downgrade is on valuation, with shares up 21% year-to-date, well above the 7% average gain for the group. Our 12-month target price of $104, up $5, reflects a 17x multiple of projected 2025 EPS, slightly above RTX’s historical forward average, but merited by a strong medium-term outlook for commercial aircraft. We keep our 2024 EPS estimate at $5.39, but lift 2025’s by $0.02 to $6.14. Q1 adj. EPS of $1.34 vs. $1.22 beat consensus by $0.11. Backlog at March 31 was $202B, up 12% Y/Y. RTX reaffirmed 2024 guidance (EPS of $5.25-$5.40), but some of the concerns from the Q4 update persist, notably on materials sourcing and supply chain. We think RTX is at peak in addressing the powdered metal issue on its GTF engines and

The following is a summary of the RTX Corporation (RTX) Q1 2024 Earnings Call Transcript: Financial Performance: RTX Corporation reported Q1 sales of $19.3 billion, marking a 12% increase in organic sales since last year. The company backlog now stands at $202 billion, up 12% from the prior year. The company experienced a 10% growth in the segment operating profit that was partially offset by lower pension income and higher interest expenses. Adjusted earnings per share were up 10% year-over-year to $1.34. The free cash flow outflow was $125 million, which aligned with expectations and indicated a $1.3 billion year-over-year improvement. Business Progress: The departure of CEO Greg Hayes was announced with Chris Calio slated to be his successor. The business saw a 33% increase in commercial OE sales and Defense sales saw 7% growth year-over-year with a backlog of $77 billion. The fiscal year 2024 will see significant defense

Wells Fargo analyst Matthew Akers maintains RTX (NYSE:RTX) with a Overweight and maintains $120 price target.

TD Cowen analyst Cai von Rumohr maintains RTX (NYSE:RTX) with a Outperform and raises the price target from $106 to $115.

RTX (NYSE:RTX) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 01/30/2024 0% Barclays $75 → $90 Maintains Equal-Weight 01/25/2024 11.11% B of A Securities $78 → $100 Upgrades Underperform → Neutral 01/24/2024 -2.22% RBC Capital → $88 Reiterates Sector Perform → Sector Perform 01/24/2024 6.67% UBS $93 → $96 Maintains Neutral 01/16/2024 4.44% Baird $88 → $94 Downgrades Outperform → Neutral 11/15/2023 — Redburn Atlantic Downgrades Buy → Neutral 10/25/2023 -4.44% Morgan Stanley $83 → $86 Maintains Equal-Weight 10/11/2023 -11.11% UBS $110 → $80 Downgrades Buy → Neutral 09/29/2023 -10% Alembic Global → $81 Initiates Coverage On → Neutral 09/25/2023 -8.89% RBC Capital → $82 Reiterates Sector Perform → Sector Perform 09/25/2023 -7.78% Morgan Stanley $95 → $83 Maintains Equal-Weight 09/18/2023 -13.33% Wells Fargo $100 → $78 Maintains Equal-Weight 09/14/2023 -12.22% DZ Bank → $79 Downgrades Buy → Hold 09/14/2023 -16.67% B

RTX’s (RTX) Raytheon unit said Monday it and the US Air Force Research Laboratory have completed a three-week field test of the CHIMERA high-power microwave weapon at White Sands Missile Range, New Mexico. CHIMERA stands for Counter-Electronic High-Power Microwave Extended-Range Air Base Defense system, the company said. The company added the system has been designed to fire highly concentrated radio energy at multiple middle-to-long-range targets. Raytheon has collaborated with the Air Force Research Laboratory, Naval Surface Warfare Center Dahlgren Division, and the Undersecretary of Defense for Research and Engineering to complete the project, the company said.

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.

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

RTX (RTX) shares were up 5.8% in recent Tuesday trading after the company reported higher-than-expected Q4 results. The company reported Q4 adjusted earnings of $1.29 per diluted share, up from $1.27 a year earlier. Analysts polled by Capital IQ expected $1.25. Net sales for the quarter ended Dec. 31 were $19.93 billion, up from $18.09 billion a year earlier. Analysts surveyed by Capital IQ expected $19.67 billion. The company said it expects 2024 adjusted EPS of $5.25 to $5.40 on sales of $78 billion to $79 billion. Analysts polled by Capital IQ expect normalized EPS of $5 and revenue of $73.28 billion.

The following is a summary of the RTX Corporation (RTX) Q4 2023 Earnings Call Transcript: Financial Performance: RTX Corporation reported an 11% organic growth for 2023, with Q4 adjusted sales standing at $19.8 billion, marking a 10% growth from the previous year. The company commands a hefty backlog of $196 billion, hinting at robust future sales and earnings. Adjusted earnings per share was $1.29, 2% up and slightly better than expectations. Commercial aftermarket was up 23%, commercial OE saw a 20% rise, and defense increased by 4%. The company ended the year with a free cash flow of $5.5 billion, surpassing their commitment. RTX returned over $16 billion of capital to shareholders for the year. Their 2024 outlook projects an estimated 7% – 8% year-over-year organic sales growth, bringing the projected total to between $78 billion and $79 billion. Business Progress: Strong global demand for RTX’s products and services in