Investing.com -- UBS upgraded RTX Corporation to "Buy" from "Neutral" noting international defense growth, Collins Aerospace margin recovery, and improvements in Pratt&Whitney’s GTF engine program as key earnings drivers.
The bank noted that international defense now accounts for 44% of Raytheon (NYSE:RTN)'s backlog, up from 32% in 2021, with potential upside if NATO defense spending reaches 3% or more of GDP.
Collins Aerospace is expected to benefit from recovering interiors, modifications, and upgrades, supporting a margin rebound.
UBS also sees the number of grounded GTF-powered aircraft declining in 2025 as maintenance capacity expands and more spare engines become available. It forecasts RTX to resume share buybacks earlier than expected, with $1.5 billion in repurchases projected for 2025.
The price target was raised to $147 from $142, with UBS expecting RTX’s valuation discount to peers to narrow over time.
Related Articles
RTX rated buy at UBS on international defense, margin improvement
Healthcare sector leads S&P 500 YTD, Johnson & Johnson and Gilead show promise - BTIG
Anthropic unveils advanced AI model with hybrid reasoning capabilities
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。