RTX upgraded to Buy from Neutral at Citi

Citi analyst Jason Gursky upgraded RTX (RTX) to Buy from Neutral with a price target of $153, up from $132. The firm expects to hear positive commentary from commercial aftermarket suppliers in Q4, saying traffic looks poised to grow above trend in 2025, and from commercial original equipment exposed names as production rates head higher. Further, defense contractors will be “somewhat balanced,” with positive commentary on demand from Europe, but some level of caution on the US given the Presidential transition, the analyst tells investors in a research note. Citi upgraded RTX on growing confidence in the outlook for revenue, cash flow, and risks associated with the Geared Turbofan issue, as well as a “compelling valuation on more normalized fundamentals.”