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Is RTX Stock a Buy Right Now? 3 Analysts Weigh In on Raytheon Price Predictions.


What’s going on with Raytheon (NYSE:RTX)? Shares of the aerospace and defense conglomerate are in the green today as the Russian invasion of Ukraine continues. RTX stock is picking up steam among retail investors as well. Messages with the RTX ticker have increased by 67% on Stocktwits as people wonder whether Raytheon stock will benefit from the conflict.

Raytheon (RTX) defense company logo hanging from glass building
Source: JHVEPhoto / Shutterstock.com

Raytheon isn’t the only defensive stock gaining from the Russia-Ukraine conflict. Both Northrop Grumman (NYSE:NOC) and Lockheed Martin (NYSE:LMT) are up over 4% on the day. As geopolitical tensions rise, spending towards defensive industries should rise as well. For example, Germany announced over the weekend that it would be raising its defense and military spending to above 2% of its gross domestic product (GDP). Last year, Germany spent 1.53% of its GDP on defensive measures, which was below the 2% NATO target.

In addition, Germany announced that it would be committing $500 million to “lethal arms and nonlethal supplies” to help Ukraine. Germany will also give its military a one-time payment of over $110 billion in an effort for “better and more modern equipment” as well as “more staff.”

With this conflict in mind, investors are wondering whether RTX stock is a good investment. Let’s see how Wall Street feels about the defense company.

RTX Stock: 3 Analysts Weigh In on Raytheon Price Predictions

  • Morgan Stanley has a price target of $118. Analyst Kristine Liwag believes that the fourth-quarter guidance Raytheon gave is too conservative. The company guided for full-year earnings per share (EPS) of between $4.60 and $4.80 while consensus estimates were at $4.95. In addition, the analyst lauds the company’s strong free cash flow, stable business model and low use of leverage.
  • Jefferies has a price target of $105. Analyst Sheila Kahyaoglu was impressed with Collins Aerospace’s performance and expects the defense business to grow at a 3% compound annual growth rate (CAGR) until 2023. Additionally, Kahyaoglu sees momentum in profitability and believes that Raytheon should capitalize on international opportunities.
  • Finally, Argus has a price target of $100. Analyst John Eade believes that technical trends have turned positive, driven by a competent management team and earnings results. Furthermore, the analyst believes that RTX stock is trading “in line with or below” its peer group in terms of price-earnings (P/E) and price-sales (P/S) ratios.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2022/02/is-rtx-stock-a-buy-right-now-3-analysts-weigh-in-on-raytheon-price-predictions/.

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