RTX price target raised to $175 from $150 at BofA

BofA raised the firm’s price target on RTX (RTX) to $175 from $150 and keeps a Buy rating on the shares. Due to tariff and mix headwinds, the firm is lowering its 2025 adjusted EPS forecast to $5.95 from $6.00, but notes that its outyear estimates are unchanged as it expects growth in defense, the commercial aftermarket, and recent OBB changes to mitigate the impacts. The OBB adding $150B of new mandatory spending to the U.S. Defense budget, NATO countries’ pledge to increase defense spending to 5% of GDP, and the U.S. again sending critical resources to Ukraine are all tailwinds for RTX, the firm added.