RTX downgraded to Underperform at BofA on increased GTF-related risks

As previously reported, BofA downgraded RTX to Underperform from Neutral with a price target of $75, down from $95, following recent geared turbofan, or GTF, developments. While some may think RTX is now a “value” investment following a nearly 10% decline since the company said it will recognize a Q3 charge of $3B due to the Pratt & Whitney issues, the firm advises caution as it sees “significant near-term risks” and thinks RTX will underperform the analyst’s coverage universe until there is a clearer understanding of the necessary fixes, customer concessions and organizational changes in the wake of this “egregious manufacturing oversight.”