RTX Corp (NYSE: RTX) sits at the center of a significant analyst repricing cycle, with one research firm raising its target to $240 while others have trimmed their numbers in recent months.
The model fair value for RTX remains unchanged at $215.27 per share, even as Wall Street recalibrates its expectations around the defense and aerospace giant.
Jefferies upgraded RTX to Buy from Hold, lifting its price target to $220 from $210, signaling the firm sees greater upside than its prior position implied.
Jefferies described RTX as operating in a “hot section of the market,” projecting 7% organic sales growth annually through 2028, with projected sales reaching $107 billion and EPS estimates running approximately 5% higher for the 2026 to 2028 period.
Melius Research also upgraded the stock earlier in the year, representing another firm shifting to a more constructive stance on RTX’s long-term trajectory.
On the bearish side, UBS, Morgan Stanley, Jefferies, and Citi all cut their RTX price targets in recent months, reflecting some concern about how prior expectations align with the current outlook.
Erste Group moved RTX from a bullish stance to a downgrade, while Wells Fargo initiated coverage with a neutral rating, both indicating hesitation about aggressive upside projections at current price levels.
RTX reported first quarter 2026 adjusted EPS of $1.78, up 21% year over year, on revenue of $22.08 billion, representing an 8.7% increase, and raised its full-year 2026 adjusted EPS guidance midpoint to between $6.80 and $6.90, with revenue guidance of approximately $93 billion backed by a $271 billion backlog.
The stock declined following those results as investors focused on tariff headwinds and the potential impact of a ceasefire in the Iran conflict on defense demand dynamics.
Raytheon, an RTX business unit, secured a phase two DARPA Burn n’ Go contract to advance adaptable solid rocket motor technology and delivered its first Lightweight Command Launch Units for the U.S. Army.
Raytheon also received an Office of Naval Research contract to develop software-defined radar for next-generation naval systems, targeting multi-mission operation from a single radar platform and spectrum sharing with commercial networks including 5G.
Collins Aerospace opened an expanded landing gear facility in Poland, with a planned production capacity increase of nearly 25% and approximately 190 new jobs expected to be created through 2026.
Pratt and Whitney plans approximately $100 million in further investment at its Rzeszow site in Poland, targeting a roughly 30% increase in engine component capacity by 2028.
On the valuation model, the revenue growth assumption was nudged from 6.05% to 6.03%, the net profit margin remains at 9.44%, the forward price-to-earnings multiple moved from 37.0x to 36.8x, and the discount rate shifted from 8.22% to 8.28%.
The key risks investors are watching include tariff exposure, jet engine reliability and cost overruns, dependence on defense budgets, commercial aviation headwinds, and a high fixed cost base that could weigh on margins if volumes slow.
