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Citigroup Lifts Price Target on RTX Corporation (RTX) to $238, Keeps Buy Rating

RTX Corporation (NYSE:RTX) is among the 10 best American defense stocks to buy according to Wall Street analysts.

On February 5, Citigroup lifted its price target on the stock to $238 from $227, while reiterating a Buy rating, representing an upside of over 21% from Thursday’s close.

The adjustment comes a day after the company announced it had reached a seven-year agreement with the Department of War to increase the production and delivery of Tomahawks, AMRAAM missiles, along with other missiles and interceptors.

The deal comes amid soaring demand for precision munitions worldwide due to ongoing geopolitical conflicts, and Washington’s subsequent quest to replenish depleted stockpiles.

According to RTX Corporation’s (NYSE:RTX) press release, production of Tomahawk cruise missiles will increase to more than 1,000 units per annum, up from about 60 currently. The production capacity of AMRAAM air-to-air missiles is also planned to expand to at least 1,900 units.

In other news, the aerospace and defense giant reported strong results for the fourth quarter of fiscal 2025, led by increased sales of engines and rising demand for aircraft maintenance and repair services. Total sales grew 12% year-over-year to $24.2 billion, while adjusted EPS stood at $1.55, beating estimates by 8 cents and up 1% from the prior year.

The company also shared its outlook for 2026, with sales anticipated between $92 billion and $93 billion, with the midpoint above analysts’ forecasts. Adjusted EPS for the year is projected to be in the range of $6.60 to $6.80.

RTX Corporation (NYSE:RTX) is a giant in the global aerospace and defense industry, providing systems and services to commercial, military, and government clients. It operates through three main businesses: Collins Aerospace, Pratt & Whitney, and Raytheon.

While we acknowledge the risk and potential of RTX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RTX and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 12 Most Profitable NASDAQ Stocks to Buy Right Now and 10 Best Defense Stocks to Buy in the S&P 500.

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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