BUZZ - Market Watch: Missiles, profit margins and growth momentum put RTX in a prime position

October 21 - ** RTX Corporation RTX.N on Tuesday raised its full-year profit and revenue forecasts (link), driven by continued growth in demand for commercial aviation services and military projects, bringing its order backlog to a record $340 billion and boosting third-quarter results

According to data from London Stock Exchange Group (LSEG), the median target price from 26 brokers covering the stock is $232.5

Moving into a new trajectory

** Morgan Stanley (rating: “Overweight”, target price: $240) stated: “Strong third-quarter 2026 results and another upward revision to guidance further solidify the favorable outlook for 2027 and beyond.”

** Morgan Stanley added that new contracts secured by Raytheon, its defense business unit, are increasingly supporting the company's growth and margin improvement, while Pratt & Whitney and Collins Aerospace continue to show performance improvement

** Citigroup (rating: “Buy”, target price: $240) pointed out that RTX holds favorable positions in both aerospace and defense, thanks to strong performance across its markets, as well as potential upside from Collins Aerospace and Raytheon

** RBC Capital Markets (“Outperform”, target price: $235) stated, “There remain opportunities for margin improvement and free cash flow growth before 2027, and with the implementation of framework agreements, RTX could see even more notable results in 2028.”

** Barclays (rating: “Overweight”, target price: $235) noted that the Collins and Pratt businesses under RTX are expected to drive continued mid-term growth and margin expansion, while Raytheon's missile business positioning should help it outperform its defense industry peers

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