Bank of America Securities analyst Ronald Epstein reiterated a Buy rating on RTX today and set a price target of $175.00.
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Ronald Epstein has given his Buy rating due to a combination of factors that suggest potential growth and resilience for RTX. Despite mixed reactions to the recent quarterly results, with some concerns over margin pressures, the defense segment showed promising growth with a 7.5% year-over-year increase in sales and improved adjusted margins. This positive performance in defense, coupled with the company’s efforts to manage tariff impacts and mix pressures, indicates a strong foundation for future growth.
Furthermore, Epstein acknowledges the long-term benefits of RTX’s commercial aerospace segment, particularly with Pratt & Whitney and Collins. The ramp-up in GTF deliveries and improvements in Aircraft on Ground situations, along with OEM growth in widebodies, are seen as positive indicators. Additionally, increased defense spending by NATO countries and the U.S., along with international sales growth, provide further upside potential. These factors contribute to Epstein’s decision to reiterate the Buy rating and raise the price objective to $175.
According to TipRanks, Epstein is a 5-star analyst with an average return of 17.7% and a 65.35% success rate. Epstein covers the Industrials sector, focusing on stocks such as Boeing, RTX, and General Dynamics.
In another report released today, Citi also reiterated a Buy rating on the stock with a $182.00 price target.