By Al Root
Shares of aerospace and defense conglomerate RTX rose early Thursday after catching a Wall Street upgrade. The company operates in hot segments of the market, which can benefit it for years to come.
On Thursday, Jefferies analyst Sheila Kahyaoglu upgraded RTX shares to Buy from Hold. Her price target went to $220 from $210.
RTX stock rose 1.4% in premarket trading to $175, while S&P 500 futures were down 0.6%. Dow Jones Industrial Average futures were up 0.4%.
Improving profit margins, opportunities for growth in the commercial aerospace engine aftermarket, and a strong defense franchise tied to missiles are three reasons Kahyaoglu cited: "RTX is home to leading franchises across Aerospace and Defense, with meaningful growth runway from marquee competitive positions and market growth [and defense] budget support."
She believes earnings per share in 2028 could hit $10.45, boosted by improving margins and share repurchases. Wall Street currently projects $8.40, according to FactSet.
RTX produced an operating profit margin of about 11.5% in 2025. That could hit 14% to 15% by 2028.
With the upgrade, 74% of analysts covering the company rate shares Buy. The average Buy-rating ratio for S&P 500 stocks typically ranges from 55% to 60%. The average analyst price target for RTX stock is about $220 a share.
Coming into Thursday trading, RTX stock was down 6% this year and up 25% over the past 12 months. Shares were down 15% since the start of the Iran war. The fighting will boost demand for RTX's defense business, but higher oil prices weigh on demand for commercial air travel.
Write to Al Root at allen.root@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
June 04, 2026 08:15 ET (12:15 GMT)
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