RTX stock holds steady as Goldman Sachs reiterates Neutral rating

Published 23/07/2025, 11:52
RTX stock holds steady as Goldman Sachs reiterates Neutral rating

Investing.com - Goldman Sachs has reiterated its Neutral rating and $141.00 price target on RTX Corp. (NYSE:RTX), a $199 billion aerospace and defense giant currently trading near its 52-week high of $153.39, following the company’s second-quarter 2025 earnings report. According to InvestingPro data, the stock has delivered an impressive 30% return year-to-date.

RTX’s second-quarter performance exceeded consensus expectations for revenue, EBIT, and EPS, while free cash flow came in slightly below projections. The company has updated its guidance for 2025, raising its revenue outlook by 2% at the midpoint while lowering EPS projections by approximately 3% to account for tariff impacts. This follows the company’s strong 15.1% revenue growth over the last twelve months, though InvestingPro analysis indicates the stock is trading at a relatively high P/E ratio of 33.3x.

Despite a four-week work stoppage at Pratt & Whitney in May, RTX maintained its 2025 free cash flow outlook, expecting to recover the impact in the second half of the year. The company reported that PW1100 MRO output increased 22% year-over-year and projects a 30% improvement for the full year.

Goldman Sachs noted that long-term aerospace fundamentals remain supportive for RTX, with potential upside from both domestic and international defense demand for the Raytheon (NYSE:RTN) segment.

The investment bank’s maintained Neutral stance reflects ongoing uncertainties regarding market share dynamics, margin comparisons, and consensus expectations for medium-term free cash flow at the aerospace and defense company.

In other recent news, RTX Corp reported stronger-than-expected earnings for the second quarter of 2025. The company achieved an adjusted earnings per share (EPS) of $1.56, surpassing analyst expectations of $1.44. Revenue also exceeded forecasts, coming in at $21.6 billion compared to the anticipated $20.68 billion. Despite these positive financial results, RTX’s stock experienced a decline in pre-market trading. Additionally, BofA Securities has increased its price target for RTX to $175 from $150, maintaining a Buy rating on the stock. These developments reflect ongoing investor interest and analyst confidence in the company. The recent earnings report and analyst actions are likely to be of significant interest to investors monitoring RTX’s performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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