-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
Our 12-month target price is $216, or 26.5x our 2027 EPS estimate, vs. RTX's three-year average forward P/E of 21.3x and peers' average forward P/E of 26.2x. We raise our 2026 EPS estimate by $0.03 to $7.18 and reiterate our 2027 EPS forecast at $8.15. RTX's upgrade reflects strengthening fundamentals across its portfolio. The defense business demonstrates exceptional momentum, with five landmark framework agreements for critical munitions providing unprecedented long-term visibility and demand signals. The record $271 billion backlog (up 25% Y/Y) and 1.14 book-to-bill ratio underscore robust demand across both commercial and defense end markets. Despite geopolitical uncertainties, commercial aerospace fundamentals remain durable, supported by 14% aftermarket growth and the GTF engine's 8,000-unit backlog. Now that the worst of the powder metal crisis is in the rearview mirror, investor focus should be shifting to the powerful, long-term economics of the massive installed base of GTF and V2500 engines.