TD Cowen analyst Gautam Khanna maintained a Buy rating on RTX yesterday and set a price target of $175.00.
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Gautam Khanna has given his Buy rating due to a combination of factors that highlight RTX’s strong operational and financial performance. The company’s recent quarterly results showed several positive indicators, including an increase in defense margins and a favorable sales mix, which contributed to a robust book-to-bill ratio. Additionally, RTX’s key segments, such as Pratt & Whitney and Collins Aerospace, have surpassed sales expectations, driven by higher demand and improved supply chain efficiency.
Furthermore, RTX has successfully reduced its tariff-related expenses, which has positively impacted its earnings before interest and taxes (EBIT) guidance. The company has also raised its sales guidance for both Pratt & Whitney and Collins Aerospace, reflecting confidence in continued demand and operational improvements. These factors, combined with the expectation of recovering engine shipments and cash flows in the upcoming quarter, support Khanna’s optimistic outlook on RTX’s stock performance.
Khanna covers the Industrials sector, focusing on stocks such as Boeing, Booz Allen, and Carpenter Technology. According to TipRanks, Khanna has an average return of 17.8% and a 73.60% success rate on recommended stocks.
In another report released on July 17, Morgan Stanley also maintained a Buy rating on the stock with a $165.00 price target.