RTX price target raised to $154 from $136 at Bernstein

Bernstein analyst Douglas Harned raised the firm’s price target on RTX (RTX) to $154 from $136 and keeps a Market Perform rating on the shares. The firm says that Raytheon appears the winner from the President’s budget proposal, NATO Summit, and Golden Dome approach. Its position is further supported by Q2 awards and DSCA announcements. Demand growth comes from the missile/missile defense businesses, which already led to Q1 backlog/LTM sales of 2.31X, even with more sluggish space and airborne sensor performance and the effects of divestitures. Near-term growth is constrained by operations, not demand, Bernstein notes, adding that a mix shift should help Raytheon move toward 12% margin goals.