RTX downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley analyst Kristine Liwag downgraded RTX to Equal Weight from Overweight with a price target of $95, down from $110. The “risk of unknown unknowns” from the Geared Turbofan engine will weigh on investment sentiment despite the strong aerospace end market growth, the analyst tells investors in a research note. Following yesterday’s “unexpected negative surprise” regarding the manufacturing defect of the Pratt & Whitney high pressure turbine discs of the Airbus A320neo Geared Turbofan engine, the analyst sees a balanced risk/reward in the shares.