In a report released on April 27, Sheila Kahyaoglu from Jefferies maintained a Hold rating on RTX (RTX – Research Report), with a price target of $130.00.
Sheila Kahyaoglu’s rating is based on a combination of factors impacting RTX’s financial outlook. Despite solid underlying results with revenue and EBIT growth in the first quarter, RTX faces a significant challenge from tariffs, which are expected to have an $850 million net impact this year. This tariff impact has led to a reduction in EPS guidance, highlighting the financial strain on the company.
Additionally, while there is notable growth in segments like Pratt & Whitney and Collins, with strong aftermarket performance and margin expansion, the overall growth rate is expected to decelerate. The company’s future prospects are further complicated by ongoing geopolitical factors and the potential for continued tariff impacts. Given these mixed signals, Kahyaoglu’s Hold rating reflects a cautious stance, balancing the company’s growth potential against the financial uncertainties posed by tariffs and other external factors.
In another report released yesterday, Barclays also maintained a Hold rating on the stock with a $130.00 price target.