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Investing.com - RBC Capital raised its price target on RTX Corp. (NYSE:RTX) to $170 from $165 while maintaining an Outperform rating following the company’s earnings report. The stock, currently trading at $155.11, has shown impressive momentum with a 45% return over the past year and is trading near its 52-week high.
RTX reported adjusted earnings per share of $1.56, approximately 8% above RBC’s estimate and the consensus forecast of $1.44.
The aerospace and defense company provided what RBC described as "incrementally positive" commentary regarding tariffs, along with projections for approximately $1.6 billion in higher second-half 2025 sales divided between its Pratt & Whitney and Collins divisions.
RBC maintained its 2026 free cash flow estimate of $8.5 billion for RTX and forecasts $10 billion in 2027, citing a strong demand environment.
The investment firm believes continued de-risking in RTX’s GTF engine program, combined with potential catalysts in the Raytheon (NYSE:RTN) business segment, could support further multiple expansion for the stock.
In other recent news, RTX Corp reported stronger-than-expected earnings for the second quarter of 2025, with an adjusted EPS of $1.56, surpassing the anticipated $1.44. Revenue also exceeded expectations, reaching $21.6 billion compared to the forecast of $20.68 billion. Despite the positive earnings report, RTX has updated its guidance for 2025, raising its revenue outlook by 2% at the midpoint, but lowering EPS projections by approximately 3% due to tariff impacts. BofA Securities responded to the earnings report by raising its price target on RTX to $175 from $150 while maintaining a Buy rating. Meanwhile, Goldman Sachs reiterated its Neutral rating and $141 price target on the company. These developments reflect a mixed reaction from analysts, with some expressing optimism in the form of a raised price target, while others maintain a more cautious stance.
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