Investing.com -- Citi upgraded Rtx Corp (NYSE:RTX) to "Buy" from "Neutral," raising its price target to $153 from $132, driven by improved revenue, cash flow outlook, and progress on the GTF engine issues.
Analysts highlighted rising original equipment or OE production rates, robust defense backlogs, and aftermarket growth driven by higher aircraft deliveries and refurbishment demand. RTX’s free cash flow could reach $10 billion by 2027, normalizing after recent one-time costs.
Citi also upgraded Northrop Grumman Corporation (NYSE:NOC) to "Buy" following a 15% stock sell-off since November. The brokerage sees valuation compelling, with strong visibility from Northrop’s key role in modernizing U.S. nuclear deterrence and potential benefits from government efficiency efforts that may shift work to contractors.
Citi maintained its price target at $587, citing better-than-feared defense budgets under the new administration.
Related Articles
Citi upgrades RTX, Northrop Grumman to ‘buy’ on growth, valuation
TikTok gets reprieve with Trump order but with twist
Replimune stock soars on FDA priority review for melanoma treatment
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.