RTX (RTX) shows "strong growth" across its balanced aerospace and defense portfolio, while its Raytheon upside remains a catalyst, RBC Capital Markets said Wednesday in a research note.
Noting the company's strong Q1 results, RBC said that Raytheon's 9% organic growth was "impressive," driven by higher volumes on the Patriot, GEM-T, Tomahawk, and Standard Missile family of munitions.
RTX raised its 2026 adjusted sales estimate by $500 million and adjusted earnings per share by $0.10 at the midpoints, RBC said, adding that the company now expects Raytheon to grow in high single digits, while maintaining the outlook for Collins and Pratt & Whitney.
The investment firm also noted that broader organic growth guidance of between 5% to 6% still appears conservative, though a meaningful portion of defense backlog upside is expected to materialize only from mid-2027 onward.
RBC reiterated its outperform rating with a $230 price target.
Shares of RTX were down nearly 4% in Wednesday trading.
Price: $180.15, Change: $-7.02, Percent Change: -3.75%