Raytheon Technologies Corp. (RTX) Beats Led by Collins...Again - Jefferies

August 2, 2021 8:16 AM EDT
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Price: $84.87 --0%

Rating Summary:
    11 Buy, 3 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 7 | Down: 8 | New: 7
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Jefferies analyst Sheila Kahyaoglu reiterated a Buy rating and $105.00 price target on Raytheon Technologies Corp. (NYSE: RTX) after Q2:21 EPS was better led by Collins. Revs grew 10% organically in Q2 w/ a similar trajectory (10% increase for Q3) and sales up 1% for 2021.

The analyst stated "Our 2021 EPS est. moves to $4.00 from $3.70 to reflect better Collins performance ($0.12 beat in Q2) coupled with a lower tax rate (16% vs. 19% previously adding $0.13). EPS rises to $6.40 through 2023. This reflects comm'l AM sales surpassing its 2019 peak by 4%, while OE remains ~20% below. We est. a 3% CAGR for the defense businesses (RMD + RIS) over the period." "There is continued momentum in profitability and the next leg up likely depends on WB/int'l traffic (down 75% vs. 2019 in May). The outlook for Collins appears conservative. As such, we raise our 2021 EPS est to $4.00 from $3.70 to reflect better Collins trends w/ EPS rising to $6.40 through 2023.The biggest risk in our view is execution as it relates to FCF."

For an analyst ratings summary and ratings history on Raytheon Technologies Corp. click here. For more ratings news on Raytheon Technologies Corp. click here.

Shares of Raytheon Technologies Corp. closed at $86.95 yesterday.



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