RTX Corp. (RTX) PT Raised to $133 at UBS
UBS analyst Gavin Parsons raised the price target on RTX Corp. (NYSE: RTX) to $133.00 (from $126.00) while maintaining a Neutral rating.
The analyst comments "RTX beat revenue led by strong military growth, and raised profit guidance at both Pratt and Raytheon. We see upside to guidance for all three, with growth supported in 4Q and beyond by a 1.8X total company book to bill (2.6X at Raytheon). Collins margins missed and RTX lowered revenue guidance on OE impact from the Boeing strike; while we believe this impact is transitory and OE demand is strong, our margin build suggests a big step-up needed in both Collins Military and Commercial AM to achieve full-year guidance. Free cash flow also continues to be impacted by a number of moving pieces, though 2024 was reiterated. The stock has re-rated as GTF risk gradually recedes, and we believe the market is increasingly looking beyond the impacted period to value the stock. There could be upside to the company's guided GTF cash impact, but more visible core margin expansion and underlying cash flow growth are not yet clear to us. We remain Neutral."