RTX Corporation (NYSE:RTX) stock is sliding lower on Tuesday as investors react to a series of downgrades for the aerospace and defense company’s shares.
Starting off these downgrades is Melius analyst Robert Spingarn. He reduced RTX stock from a “buy” rating to a “hold” rating. The analyst is also cutting his price target from $98 per share to $92 per share.
Next up we have RBC analyst Ken Herbert. He also dropped RTX stock from a “buy” rating to a “hold” rating. To go along with that, the analyst reduced his price prediction from $105 per share to $82 per share.
Finally, Barclays analyst David Strauss likewise dropped RTX stock from a “buy” rating to a “hold” rating. He did so while also decreasing his price target for shares from $100 to $75 per share.
To put these recent actions into perspective, the analyst consensus rating for RTX is a hold rating based on 14 opinions. Additionally, the analyst consensus price prediction sits at $99.71 per share.
What’s Behind the RTX Stock Downgrades?
Analyst Robert Spingarn pointed toward the charges that RTX is suffering due to its engine recall as a reason for his downgrade in a note to clients obtained by Barron’s:
“When RTX presented at the Paris Air Show in June, 10% of aircraft flying GTF engines were out of service largely due to durability issues. Today, 18% are now out of active service.”
RTX stock is down 3.8% as of Tuesday morning with some 5.3 million shares on the move. For the record, the company’s daily average trading volume is about 6.6 million shares.
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On the date of publication, William White 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.
