RTX Corporation Stock Price Targets
Comprehensive analysis of short, mid, and long-term price targets for RTX Corporation (RTX).
Give me a comprehensive price target analysis for RTX Corporation (RTX).
I have successfully plotted the horizontal trendlines for RTX at its key price targets:
- Low Target: $134 (Red)
- Median Target: $167.50 (Orange)
- High Target: $180 (Green)
Executive Summary
RTX presents a compelling investment opportunity with solid technical momentum and favorable fundamental valuations. The stock's current price of $156.32 is approaching its mid-term price target, offering potential upside if bullish catalysts materialize. The company's strong order backlog, operational efficiency, and steady revenue growth underpin a positive long-term outlook.
Fundamental Analysis
| Metric | Value |
|---|---|
| Market Cap | ~$209.2 billion |
| Enterprise Value | ~$250.3 billion |
| Trailing PE | 34.28 |
| Forward PE | 25.58 |
| Price-to-Book | 3.35 |
| Return on Equity | 10.3% |
| Profit Margins | 7.35% |
| Debt-to-Equity | 67.86 |
| Total Cash | ~$4.78 billion |
| Total Debt | ~$43.6 billion |
| Dividend Yield | 1.74% |
| Beta | 0.672 |
RTX's valuation remains reasonable considering its defensive sector and growth prospects, with a forward PE below the market average, and healthy cash reserves relative to debt levels.
Earnings Analysis
- Recent Earnings: Consistent net income (
$1.65B Q2 FY25) with stable EBITDA ($3.6B). - EPS Trends: Slight recent fluctuations, but generally stable, with current EPS around $1.22 (diluted).
- Revisions & Sentiment: Analysts show a mix of upward and downward revisions, indicating cautious optimism, supported by strong revenue and margins.
- Earnings Quality: Steady revenue (~$21.58B), healthy profit margins, and stable cash flow reflect earnings sustainability.
Technical Analysis
- The stock is trading above its 50-day moving average (~$144), indicating a positive short-term trend.
- RSI (~50-70) suggests moderate momentum, not overbought.
- MACD indicates bullish trend momentum in recent weeks.
- Current price near the median analyst target (~$167.50), with resistance at $180 and support around $134.
Analyst Consensus & Price Targets
| Target Type | Price (USD) | Number of Analysts |
|---|---|---|
| Low | 134 | 20 |
| Median | 167.50 | 20 |
| High | 180 | 20 |
The consensus leans toward moderate upside with expectations of continued growth.
Price Target Analysis
Short-Term (Next 3 months):
- Price Target: ~$167.50
- Justification: Based on consensus median, with technical momentum supporting a move higher.
- Key Drivers: Macroeconomic stability, defense sector demand, potential contract wins.
Mid-Term (Next 12 months):
- Price Target: ~$167.50 to $180
- Justification: Expected earnings growth, operational improvements, and market sentiment.
- Key Drivers: Defense spending, technological advancements, and geopolitical factors.
Long-Term (3+ years):
- Price Target: $180 or higher
- Justification: Robust backlog, R&D pipeline, and strategic initiatives could push valuations higher.
- Key Drivers: Global defense expenditure, innovation, and strategic acquisitions.
Key Risks & Opportunities
Risks:
- Geopolitical instability affecting defense budgets.
- Potential delays in contract wins or project execution.
- Increasing debt levels impacting financial flexibility.
Opportunities:
- Growing defense budgets globally.
- Expansion into new markets and technology sectors.
- Share buybacks and dividend policies enhancing shareholder value.
Investment Recommendation
Rating: Hold to Buy over a 12-24 month horizon.
Expected Return: Potential upside from current levels (~$156) to ~$180, approximately 15-20%.
Rationale: Given solid fundamentals, constructive technical outlook, and favorable sector dynamics, RTX offers a balanced risk-reward profile.
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