Jefferies Boosts RTX Corporation (RTX) Price Target Despite Lower EPS Forecast

RTX Corporation (NYSE:RTX) ranks among the Best Low Volatility Investments in December 2025. On November 25, Jefferies lifted its price target for RTX Corporation (NYSE:RTX) from $175 to $190 while retaining a Hold rating on the defense and aerospace company. The hike came as Jefferies reduced its 2026 adjusted EPS forecast by 2%, to $6.60 from $6.75.

Jefferies noted numerous drivers for the EPS adjustment, including the de-risking of RTX’s pension program, which resulted in decreased pension income, as well as AI and digital investments within business costs.

RTX Corporation (NYSE:RTX) is also boosted by a number of key partnerships. In November 2025, Collins Aerospace and the Royal Netherlands Air and Space Force (RNLASF) signed a deal to develop a new military avionics service facility in the Netherlands to support the European F-35 and CH-47F fleets.

The same month, RTX announced that Collins Aerospace and Emirates had extended their long-term agreement for service, repair, and overhaul activities on the main landing gears of Emirates’ A380 fleet.

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 potential of RTX to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than RTX and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.