Analyst Gautam Khanna of TD Cowen maintained a Buy rating on RTX, retaining the price target of $185.00.
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Gautam Khanna has given his Buy rating due to a combination of factors influencing RTX’s current and future performance. The company’s strong third-quarter results, particularly in Raytheon Defense, have demonstrated a robust operating margin of 12.2%, surpassing market expectations. This strength is attributed to a favorable sales mix and productivity improvements, with a significant portion of non-US orders, which are typically more profitable, contributing to the backlog. The expectation of continued non-US sales growth is likely to support margin expansion in the future.
Additionally, RTX’s Pratt & Whitney division has shown promising signs with a reaffirmed 30% maintenance, repair, and overhaul (MRO) output growth target for 2025, despite current year-to-date figures being lower. The company has also maintained its provision for geared turbofan (GTF) engines, indicating stability in this area. Furthermore, RTX has raised its revenue and earnings guidance for 2025, suggesting confidence in its operational capabilities and future profitability. These factors collectively underpin Khanna’s positive outlook and Buy rating for RTX.
In another report released today, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $181.00 price target.