RTX: Capitalizing on Robust Aerospace and Defense Demand With Enhanced Operating Leverage and Premium Valuation Upside

Analyst Ronald Epstein of Bank of America Securities reiterated a Buy rating on RTX, with a price target of $230.00.

Ronald Epstein has given his Buy rating due to a combination of factors tied to RTX’s strong growth momentum and robust demand backdrop. He notes that the company is delivering solid organic revenue growth and building a record backlog, supported by rising demand in commercial original equipment, aftermarket services, and defense programs across both U.S. and international customers. In his view, this broad-based strength positions RTX to benefit from a global environment that requires more propulsion, aerospace systems, and defense capabilities, which should sustain above-market growth.

Epstein also emphasizes improving performance and operating leverage across RTX’s key segments—Pratt & Whitney, Collins Aerospace, and Raytheon—driven by higher aircraft and engine deliveries, growing aftermarket activity, and particularly strong international defense orders that carry attractive margins. He views RTX’s stepped-up capital expenditures in production capacity and digital transformation as a disciplined response to demand and as supported by growing governmental backing for multi-year munitions contracts, which should enhance returns and visibility. Reflecting these fundamentals, he raises his price objective to $230, applying a premium EV/EBITDA multiple to account for the company’s resolution of prior engine issues, strong demand tailwinds, and renewed defense growth, all of which, in his assessment, justify a continued Buy rating on RTX shares.

In another report released on January 28, J.P. Morgan also maintained a Buy rating on the stock with a $215.00 price target.