IonQ reaches 1,000 patents milestone with new quantum computing grants
On Wednesday, Benchmark analysts issued an upgrade for RTX Corp (NYSE:RTX) stock, elevating it from Hold to Buy, while setting a new price target of $140.00. The upgrade is based on several factors that are expected to benefit the company’s performance in both the aerospace and defense sectors. With a market capitalization of $175 billion and impressive revenue growth of 15% over the last twelve months, RTX has established itself as a prominent player in the Aerospace & Defense industry. InvestingPro analysis indicates the stock is currently trading near its Fair Value.
The analysts cited the impact of the "Peace Through Strength" global campaign initiated by Trump, which has been contributing positively to the aerospace and defense order flow. This campaign is seen as a key driver for the industry and, by extension, for RTX Corp’s business prospects.
Another contributing factor to the upgrade is the strength observed in engine and lease rates, which bolster the company’s Pratt division. Moreover, the maintenance, repair, and overhaul (MRO) facilities, along with improvements in jet engine supply chains, have been noted as additional supportive elements for RTX’s future growth.
The Paris Air Show was also mentioned as a momentum builder for RTX Corp, indicating a robust industry environment. The analysts expressed confidence in the company’s potential, suggesting that there is approximately a 10% upside to RTX Corp’s stock with the new Buy rating and price target.
The new price target of $140.00 is based on a 20x multiple of the company’s estimated earnings per share (EPS) for the fiscal year 2026, reflecting Benchmark’s positive outlook on RTX Corp’s earnings potential over the next few years.
In other recent news, RTX Corp. reported a 7.9% increase in its quarterly dividend, bringing it to 68 cents per share. This announcement reflects the company’s confidence in its financial health and commitment to shareholder returns, with a history of paying dividends since 1936. Additionally, RTX is in contention for a significant contract to modernize the U.S. air traffic control system, alongside IBM (NYSE:IBM), as indicated by President Donald Trump. The President highlighted the urgency of the project, emphasizing the need for a single contractor to oversee the overhaul. Furthermore, RTX is expected to play a substantial role in a proposed $100 billion arms deal with Saudi Arabia, which could involve contributions from other major defense firms. UBS analyst Gavin Parsons (NYSE:PSN) raised the price target for RTX shares to $138, maintaining a Buy rating due to strong first-quarter results and financial guidance. Parsons expressed confidence in RTX’s ability to offset tariff impacts through strategic price increases and cost reductions. RTX’s ASTARTE system was successfully integrated with military command frameworks during a recent demonstration, showcasing advancements in airspace operations. These developments highlight RTX’s ongoing strategic initiatives and financial performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.