JP Morgan Maintains Overweight on RTX, Raises Price Target to $130
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 29 2024
0mins
Should l Buy RTX?
Source: Benzinga
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy RTX?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on RTX
Wall Street analysts forecast RTX stock price to fall
14 Analyst Rating
9 Buy
5 Hold
0 Sell
Moderate Buy
Current: 196.420
Low
168.00
Averages
195.77
High
215.00
Current: 196.420
Low
168.00
Averages
195.77
High
215.00
About RTX
RTX Corporation is an aerospace and defense company, which provides advanced systems and services for commercial, military, and government customers worldwide. The Company operates through three segments: Collins Aerospace, Pratt & Whitney, and Raytheon. Collins Aerospace segment provides technologically advanced aerospace and defense products and aftermarket service solutions for civil and military aircraft manufacturers, commercial airlines, and regional, business and general aviation, as well as for defense and commercial space operations. The Pratt & Whitney segment supplies aircraft engines for commercial, military, business jet, and general aviation customers. The Raytheon segment provides defensive and offensive threat detection, tracking and mitigation capabilities for the United States and foreign government and commercial customers. The Raytheon designs, develops, and provides advanced capabilities in integrated air and missile defense, smart weapons, missiles and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Raytheon Missiles Secures $213.4M Contract Modification for Navy Systems
- Significant Contract Value: Raytheon Missiles and Defense has secured a $213.4 million contract modification, covering installation, integration, testing, maintenance, and upgrades for Zumwalt-class Navy combat systems, indicating strong demand in the defense sector.
- Project Completion Timeline: The work is expected to be completed by April 2027, demonstrating the company's ongoing commitment to long-term defense projects, which could positively impact future revenue streams.
- Budget Funding Allocation: The FY25 and FY26 Navy budget funds will be obligated at the time of award, with approximately $32.3 million set to expire by the end of FY26, highlighting the importance of effective fund management.
- Stock Price Reaction: RTX's stock traded slightly higher at $195.96 in after-hours trading, reflecting a positive market response to the contract, which may enhance investor confidence in the company.
See More
Apple CEO Transition and Market Updates
- Apple CEO Transition: Tim Cook will step down as CEO of Apple on September 1, with John Ternus taking over; under Cook's leadership since August 2011, Apple's stock has surged approximately 2000%, indicating strong growth during his tenure.
- Market Performance: Apple's stock has risen 38% over the past year, although it remains relatively flat in after-hours trading, reflecting a mix of market anticipation and uncertainty regarding the new CEO's impact.
- Aviation Industry Challenges: Alaska Air CEO Ben Minicucci will discuss the impact of high jet fuel prices on the airline industry in an interview tomorrow; despite an 18% stock increase in April, shares are down 13% year-to-date, highlighting ongoing industry pressures.
- Defense Company Dynamics: Northrop Grumman and RTX have seen flat stock performance over the past three months, but Northrop's stock has dropped 9% since the onset of the Iran conflict, while RTX is down 3%, illustrating the geopolitical effects on the defense sector.
See More
Investors Eye Upcoming Earnings Reports as Market Catalysts
- Positive Bank Performance: Bank stocks kicked off earnings season last week, with the State Street SPDR S&P Bank ETF (KBE) gaining over 2% and marking its fifth consecutive winning week, indicating strong market leadership and potentially boosting investor confidence.
- Focus on Defense Stocks: Jay Woods highlighted that the three largest components of the iShares U.S. Aerospace & Defense ETF (ITA)—GE, RTX, and Boeing—are set to report earnings, with ITA climbing over 7% in 2026, on track for its sixth consecutive profitable year, showcasing the strength of the defense sector.
- ServiceNow Recovery Potential: ServiceNow shares have tumbled more than 35% in 2026, making it one of the worst performers in the S&P 500, but analysts believe the sell-off is overdone, with an average price target suggesting over 72% upside, making it a stock to watch.
- UnitedHealth Stock Analysis: UnitedHealth's stock has fallen over 29% in the past year, yet it is currently trading above its 200-day moving average; Woods noted that if it holds above $324 per share, it could see upside towards $353.75, while downside risks could see it drop to $300 or $287.
See More
Honeywell Sells Business to Reshape Portfolio Amid Market Uncertainty
- Honeywell Business Sale: Honeywell sells its Productivity Solutions and Services (PSS) business to Brady Corporation for $1.4 billion in cash, a strategic move to divest cyclical, slower-growing, lower-margin operations, thereby enhancing the overall quality of its portfolio.
- Market Reaction Stable: Despite a 5% rise in oil prices due to uncertainty over commercial shipping traffic in the Strait of Hormuz, the market's decline was less severe than feared, as Treasury yields remained relatively unchanged, indicating a stable investor sentiment.
- Eli Lilly Acquisition Moves: Eli Lilly acquires clinical-stage biotech firm Kelonia Therapeutics for $3.25 billion in cash, aiming to bolster its cancer treatment pipeline, with the deal potentially worth up to $7 billion, showcasing the company's aggressive expansion strategy in oncology.
- Active IPO Market: In spite of uncertainties from the Iran conflict, Jersey Mike's confidentially files for an IPO with a valuation of approximately $8 billion, reflecting ongoing interest in new public offerings and further driving growth in investment banking activities.
See More
Raytheon Delivers Next Generation Jammer Pods to Royal Australian Air Force
- Early Delivery: Raytheon has delivered its first Next Generation Jammer pods to the Royal Australian Air Force ahead of schedule in September 2025 under a joint development and production program with Australia and the U.S. Navy, indicating strong international demand for advanced electronic warfare systems.
- Enhanced Operational Capability: The jammer pods are designed to improve the survivability and mission effectiveness of military aircraft by helping crews operate with reduced detection risk, thereby reinforcing Raytheon's market position in the defense procurement sector.
- Ongoing Support: In addition to the deliveries, Raytheon is providing deployment and maintenance support in Australia, ensuring the long-term operational effectiveness of the systems, which enhances customer trust and promotes future business growth.
- International Collaboration: This program highlights the increasing defense spending by U.S. allies, with Raytheon's close collaboration with the U.S. Navy and Royal Australian Air Force further driving interoperability with American platforms and signaling potential for more international contract opportunities.
See More
RTX Q1 Earnings Outlook Strong Amid Rising Defense Demand
- Optimistic Earnings Forecast: RTX is expected to report Q1 EPS of $1.52, reflecting a 3.4% increase, with revenue anticipated to rise nearly 6% to $21.47 billion, indicating robust demand in the defense and aerospace sectors.
- Rising Market Demand: Escalating tensions between the U.S. and Iran have led to increased demand for missiles, radar systems, and interceptors, positioning RTX favorably as a prime contractor for the Pentagon.
- Increased Contract Signings: RTX has recently signed contracts to supply Patriot interceptors to Ukraine and the Netherlands, which not only strengthens its market position but also has the potential to drive future revenue growth.
- Enhanced Investor Confidence: RBC analysts believe that RTX's backlog growth in upcoming quarters will bolster investor confidence in revenues for 2026-2027, despite the current administration's focus on reducing dividends and stock buybacks.
See More
Raytheon Missiles Secures $213.4M Contract Modification for Navy Systems
- Significant Contract Value: Raytheon Missiles and Defense has secured a $213.4 million contract modification, covering installation, integration, testing, maintenance, and upgrades for Zumwalt-class Navy combat systems, indicating strong demand in the defense sector.
- Project Completion Timeline: The work is expected to be completed by April 2027, demonstrating the company's ongoing commitment to long-term defense projects, which could positively impact future revenue streams.
- Budget Funding Allocation: The FY25 and FY26 Navy budget funds will be obligated at the time of award, with approximately $32.3 million set to expire by the end of FY26, highlighting the importance of effective fund management.
- Stock Price Reaction: RTX's stock traded slightly higher at $195.96 in after-hours trading, reflecting a positive market response to the contract, which may enhance investor confidence in the company.
See More
Apple CEO Transition and Market Updates
- Apple CEO Transition: Tim Cook will step down as CEO of Apple on September 1, with John Ternus taking over; under Cook's leadership since August 2011, Apple's stock has surged approximately 2000%, indicating strong growth during his tenure.
- Market Performance: Apple's stock has risen 38% over the past year, although it remains relatively flat in after-hours trading, reflecting a mix of market anticipation and uncertainty regarding the new CEO's impact.
- Aviation Industry Challenges: Alaska Air CEO Ben Minicucci will discuss the impact of high jet fuel prices on the airline industry in an interview tomorrow; despite an 18% stock increase in April, shares are down 13% year-to-date, highlighting ongoing industry pressures.
- Defense Company Dynamics: Northrop Grumman and RTX have seen flat stock performance over the past three months, but Northrop's stock has dropped 9% since the onset of the Iran conflict, while RTX is down 3%, illustrating the geopolitical effects on the defense sector.
See More
Investors Eye Upcoming Earnings Reports as Market Catalysts
- Positive Bank Performance: Bank stocks kicked off earnings season last week, with the State Street SPDR S&P Bank ETF (KBE) gaining over 2% and marking its fifth consecutive winning week, indicating strong market leadership and potentially boosting investor confidence.
- Focus on Defense Stocks: Jay Woods highlighted that the three largest components of the iShares U.S. Aerospace & Defense ETF (ITA)—GE, RTX, and Boeing—are set to report earnings, with ITA climbing over 7% in 2026, on track for its sixth consecutive profitable year, showcasing the strength of the defense sector.
- ServiceNow Recovery Potential: ServiceNow shares have tumbled more than 35% in 2026, making it one of the worst performers in the S&P 500, but analysts believe the sell-off is overdone, with an average price target suggesting over 72% upside, making it a stock to watch.
- UnitedHealth Stock Analysis: UnitedHealth's stock has fallen over 29% in the past year, yet it is currently trading above its 200-day moving average; Woods noted that if it holds above $324 per share, it could see upside towards $353.75, while downside risks could see it drop to $300 or $287.
See More
Honeywell Sells Business to Reshape Portfolio Amid Market Uncertainty
- Honeywell Business Sale: Honeywell sells its Productivity Solutions and Services (PSS) business to Brady Corporation for $1.4 billion in cash, a strategic move to divest cyclical, slower-growing, lower-margin operations, thereby enhancing the overall quality of its portfolio.
- Market Reaction Stable: Despite a 5% rise in oil prices due to uncertainty over commercial shipping traffic in the Strait of Hormuz, the market's decline was less severe than feared, as Treasury yields remained relatively unchanged, indicating a stable investor sentiment.
- Eli Lilly Acquisition Moves: Eli Lilly acquires clinical-stage biotech firm Kelonia Therapeutics for $3.25 billion in cash, aiming to bolster its cancer treatment pipeline, with the deal potentially worth up to $7 billion, showcasing the company's aggressive expansion strategy in oncology.
- Active IPO Market: In spite of uncertainties from the Iran conflict, Jersey Mike's confidentially files for an IPO with a valuation of approximately $8 billion, reflecting ongoing interest in new public offerings and further driving growth in investment banking activities.
See More
Raytheon Delivers Next Generation Jammer Pods to Royal Australian Air Force
- Early Delivery: Raytheon has delivered its first Next Generation Jammer pods to the Royal Australian Air Force ahead of schedule in September 2025 under a joint development and production program with Australia and the U.S. Navy, indicating strong international demand for advanced electronic warfare systems.
- Enhanced Operational Capability: The jammer pods are designed to improve the survivability and mission effectiveness of military aircraft by helping crews operate with reduced detection risk, thereby reinforcing Raytheon's market position in the defense procurement sector.
- Ongoing Support: In addition to the deliveries, Raytheon is providing deployment and maintenance support in Australia, ensuring the long-term operational effectiveness of the systems, which enhances customer trust and promotes future business growth.
- International Collaboration: This program highlights the increasing defense spending by U.S. allies, with Raytheon's close collaboration with the U.S. Navy and Royal Australian Air Force further driving interoperability with American platforms and signaling potential for more international contract opportunities.
See More
RTX Q1 Earnings Outlook Strong Amid Rising Defense Demand
- Optimistic Earnings Forecast: RTX is expected to report Q1 EPS of $1.52, reflecting a 3.4% increase, with revenue anticipated to rise nearly 6% to $21.47 billion, indicating robust demand in the defense and aerospace sectors.
- Rising Market Demand: Escalating tensions between the U.S. and Iran have led to increased demand for missiles, radar systems, and interceptors, positioning RTX favorably as a prime contractor for the Pentagon.
- Increased Contract Signings: RTX has recently signed contracts to supply Patriot interceptors to Ukraine and the Netherlands, which not only strengthens its market position but also has the potential to drive future revenue growth.
- Enhanced Investor Confidence: RBC analysts believe that RTX's backlog growth in upcoming quarters will bolster investor confidence in revenues for 2026-2027, despite the current administration's focus on reducing dividends and stock buybacks.
See More
