RTX stock price target raised to $202 from $197 at UBS on strong results

Investing.com - UBS raised its price target on RTX Corp. (NYSE:RTX) to $202.00 from $197.00 on Wednesday, while maintaining a Buy rating on the aerospace and defense company’s stock. The new target represents potential upside from the current price of $174.12, though InvestingPro analysis suggests the stock is currently trading above its Fair Value.

The price target increase follows what UBS described as a "broad-based core beat and raise" by RTX, demonstrating progress on multiple revenue and margin drivers that were key to UBS’s earlier upgrade of the stock. With a market capitalization of $231.62 billion and impressive revenue growth of 15.44% over the last twelve months, RTX has shown strong operational momentum.

UBS noted better original equipment build rates and modifications at Collins Aerospace, along with strong bookings at Raytheon that support accelerating growth and margin expansion for the company. InvestingPro data reveals RTX has maintained dividend payments for 55 consecutive years, with a current yield of 1.72%, highlighting its financial stability. Subscribers can access 10 additional ProTips and comprehensive analysis in the Pro Research Report.

While UBS acknowledged that GTF (geared turbofan) aircraft on ground (AOG) issues have remained elevated longer than expected, the firm pointed out that RTX provided clarity on the situation and reiterated its technical and financial outlook, which should address investor concerns about the program’s trajectory.

RTX committed to 90-100% cash flow conversion excluding powdered metal drag, with AOG expected to decline into year-end and $4.0 billion of free cash flow generation in the quarter, suggesting to UBS that core business strength will convert into stronger long-term free cash flow generation.

In other recent news, RTX Corp reported impressive Q3 2025 earnings, surpassing Wall Street forecasts. The company achieved adjusted earnings per share of $1.70, exceeding the expected $1.41. Additionally, RTX’s revenue reached $22.5 billion, surpassing the anticipated $21.27 billion. These results reflect a robust financial performance for the quarter. RTX also raised its guidance for the full year, indicating a positive outlook. Analysts have noted this strong performance, with some firms likely to adjust their ratings accordingly. The company’s stock experienced a positive reaction to these developments. Investors may find these recent updates noteworthy as they reflect RTX’s current financial health.

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