Jefferies Reaffirms Hold Rating on RTX Corporation (RTX) Following Defense Systems Deal with Egypt

RTX Corporation (NYSE:RTX) ranks among the 14 safe stocks to buy now for a starter stock portfolio.

Jefferies Reaffirms Hold Rating on RTX Corporation (RTX) Following Defense Systems Deal with Egypt

Following the US Department of Defense’s announcement that it had authorized Egypt’s $4.7 billion purchase of National Advanced Surface-to-Air Missile Systems (NASAMS), Jefferies reaffirmed its Hold rating and $225 price target for RTX Corporation (NYSE:RTX) on March 6. The transaction includes hundreds of missiles, scores of guidance units, and four AN/MPQ-64F1 Sentinel radar systems.

Additionally, through the end of the decade, the company’s Air Warfare Systems division, which also includes AMRAAM and Tomahawk, is expected to grow at a high single-digit rate.

According to Jefferies, each percentage point of growth in Air Warfare is equivalent to one cent toward 2027 earnings per share of $7.40, or 1% of the total.

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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