Janice R. Andrews
Deutsche Bank analyst Scott Deuschle has raised RTX’s (NYSE: RTX) rating from “Hold” to “Buy,” setting a new price target of $140, up from $131. Deuschle explains that RTX behaves like a defense stock in terms of valuation but demonstrates aerospace-like EBIT growth, making it a compelling pick for those looking to invest in the global defense sector.
The firm emphasizes RTX’s strong long-term growth prospects, robust operating leverage in aerospace, and substantial international defense revenue. These attributes give RTX an edge over traditional defense stocks, allowing for better earnings growth without a significant risk of multiple derating, Deutsche Bank believes.
The upgrade reflects growing optimism about RTX’s potential to deliver superior returns through its unique position in the defense and aerospace industries.
