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Research Alert: CFRA Maintains Hold Opinion On Rtx Corporation
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Research Alert: CFRA Maintains Hold Opinion On Rtx Corporation
Oct 24, 2025 7:50 AM

10:30 AM EDT, 10/24/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We increase our 12-month target price by $32 to $196, driven by our assumed P/E multiple of 24.0x applied to our 2027 EPS estimate, a premium to RTX's three-year average forward P/E of 19.8x but a small discount to peers, which are trading at an average forward P/E of 25.0x. We raise our 2025 EPS estimate by $0.29 to $6.24, while reiterating 2026 at $7.15 and initiating our 2027 forecast at $8.15. Our estimate increases reflect RTX's strong Q3 results, including 13% organic sales growth and raised full-year guidance for both sales ($86.5-87.0B) and EPS ($6.10-6.20). The company demonstrated robust execution with six consecutive quarters of margin expansion, record $251B backlog (+13% Y/Y), and $4.0B quarterly free cash flow. Defense momentum remains strong with $37B in Q3 awards, while commercial aerospace benefits from aftermarket growth (+18% Y/Y in Q3) and supply chain improvements. The positive fundamental trends are partly offset by risks related to costs for Geared Turbofan maintenance and tariff impacts.

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