Reasons Behind the Bullish Outlook on RTX Stock

Wednesday, 20 March 2024, 18:33
Despite a 14% increase in the past three months, analyst Cai von Rumohr predicts further upside for RTX (NYSE: RTX) stock, now setting a price target at $115, indicating a potential 22% increase. The bullish outlook stems from growth in the commercial aftermarket business and expected defense spending boosts in 2025 and 2026. Additionally, RTX stands out with a robust backlog of $196 billion, positioning the company for long-term growth.
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Reasons Behind the Bullish Outlook on RTX Stock

2 Factors Driving the Bullish Outlook on RTX

Cai von Rumohr raises price target based on growth in commercial aftermarket business and increased defense spending in 2025 and 2026.

Commercial Aftermarket Success

RTX achieved 23% increase in 2023 compared to 2022. Strong recovery in air travel is driving significant aftermarket demand, expected to continue in 2024.

Robust Backlog Strength

RTX's backlog of $196 billion makes it an appealing buy. Strong backlog suggests company poised for growth, especially amidst air travel recovery.

Is RTX a Buy?

Von Rumohr's price target signals long-term opportunity. Although not included in the 10 best stocks by Motley Fool, RTX remains a solid choice for investors with a focus on a conservative investment approach.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.

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