Douglas Harned, an analyst from Bernstein, maintained the Hold rating on RTX (RTX – Research Report). The associated price target remains the same with $136.00.
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Douglas Harned has given his Hold rating due to a combination of factors impacting RTX’s performance. The company is expected to benefit from increased export demand and potential U.S. budget increases, particularly in the defense sector. However, there are concerns about the impact of trade tensions, which could lead to delivery delays and increased costs for Collins and Pratt & Whitney divisions.
While Collins is anticipated to experience margin expansion, the situation at Pratt & Whitney is mixed, with potential negative effects from GTF groundings. Despite these challenges, Pratt’s high-margin spare engine deliveries could improve margins in the short term, but may pose long-term risks. Overall, the outlook for RTX is balanced, with potential upsides and downsides, leading to the Hold rating.
Based on the recent corporate insider activity of 48 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of RTX in relation to earlier this year.