Jefferies Upgrades RTX Corporation (RTX) To Buy From Hold

RTX Corporation (NYSE:RTX) is among the 10 Best Aerospace and Defense Stocks to Buy According to Hedge Funds. On June 4, Jefferies analyst Sheila Kahyaoglu upgraded the stock to Buy from Hold and set a new price target of $220, up from $210.

According to Barron’s, the analyst cited rising profit margins, growth prospects in the commercial aerospace engine aftermarket, and a strong defense business among the reasons for the adjustment. Kahyaoglu was quoted as saying the following:

“RTX is home to leading franchises across Aerospace and Defense, with meaningful growth runway from marquee competitive positions and market growth [and defense] budget support.”

Jefferies believes RTX Corporation (NYSE:RTX)’s share repurchase program and improving profit margins could take its EPS to around $10.45 in 2028, which will be over $2 above Wall Street’s current projections.

As of the close of business on June 5, Wall Street has a Moderate Buy rating on the aerospace and defense conglomerate, with an average share price upside potential of 22%.

In other news, the defense contractor announced on June 3 that it had secured a $515 million contract for the SPY-6 family of radars from the U.S. Navy, building on the Integration and Production Support contract from 2025. The agreement will see Flight IIA destroyers being upgraded with the SPY-6(V)4 variant.

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.

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