RTX upgraded to Overweight from Equal Weight at Morgan Stanley

Morgan Stanley upgraded RTX (RTX) to Overweight from Equal Weight with a $135 price target The firm sees the stock’s risk/reward skew more positive after yesterday’s pullback. RTX underperformed the market on concerns about the financial impact of tariffs, the analyst tells investors in a research note. However, Morgan Stanley says RTX does not have a particularly outsized impact from tariffs compared to the broader market as 54% of company revenue is to the “more insulated” defense industry. In the long-term, should the tariffs stay in place, RTX should fully offset higher costs as contracts roll off in the next five years, the firm contends.