RTX (RTX) remains set for continued sales growth, margin improvement, and stronger cash flow as defense demand builds, commercial aerospace stays healthy, with recent share pullback seen as a buying chance, Morgan Stanley said in a note Wednesday.
The company's Q1 showed broad strength across the business, but the stock fell as investors focused on possible 2027 risk tied to high oil prices and wider economic uncertainty, the investment firm said.
Morgan Stanley said risks look more like timing issues than long-term problems, adding that demand drivers still appear solid because shop visit trends remain healthy and engine maintenance needs continue.
Commercial aerospace remains resilient, supported by stable production, strong aftermarket activity, and a young installed base that should keep maintenance demand elevated, according to the note.
Morgan Stanley kept its overweight rating and maintained RTX as its top aerospace pick, while lowering its price target to $220 from $235.
Price: $180.66, Change: $-6.51, Percent Change: -3.48%