Key Stats for RTX Stock
- 52-Week Range: $135 to $215
- Current Price: $181
- Street Mean Target: $216
- Street High Target: $242
- Analyst Consensus: 11 Buy, 5 Outperform, 7 Hold, 1 Underperform, 1 Sell
- TIKR Model Target (Dec. 2030): $218
Jefferies Upgrades RTX Stock to Buy as the Market Underprices a $271 Billion Backlog
RTX Corporation (RTX), the aerospace and defense company behind Pratt & Whitney engines, Collins Aerospace systems, and Raytheon missiles and sensors, rose around 2% in premarket trading on June 4 after Jefferies upgraded the stock to Buy from Hold and lifted its price target to $220.
Jefferies cited RTX’s path to around 13% margin expansion and around 7% annual sales growth through 2028, driven by Collins Aerospace efficiencies, a Pratt & Whitney margin recovery, and sensor-led growth at Raytheon.
The upgrade landed the same week Reuters confirmed Raytheon won a $515 million follow-on Navy contract for SPY-6 maritime radars, with output expected to double by 2028.
RTX reported Q1 2026 adjusted EPS of $1.78, up 21% year-over-year, on adjusted sales of $22.1 billion, up 10% organically, with all three business segments contributing to the growth.
CEO Chris Calio told investors at the Bernstein Strategic Decisions Conference that the company’s $271 billion backlog is a record, up 25% year-over-year, and that the framework agreements with the Department of War for Tomahawk, AMRAAM, and the Standard Missile family sit on top of that figure, not inside it.
“Our focus continues to be on execution,” Calio said. “We’re going to do over $90 billion in sales this year.”
RTX raised its full-year adjusted EPS guidance to $6.70 to $6.90 from its prior range of $6.60 to $6.80, and maintained its free cash flow outlook of $8.25 billion to $8.75 billion.
The stock is down around 6% year-to-date, a disconnect that both Jefferies and Citi have flagged as a buying opportunity, with Citi citing attractive valuations and sector tailwinds after a defense selloff it characterized as overdone.
Wall Street Says RTX Stock Is Worth Around 19% More
Sixteen of 26 analysts covering RTX stock rate it Buy or higher, against eight Holds and two on the negative side of the ledger, with a street mean target of around $216 and a high target of around $242.
Jefferies, the most recent voice to move, raised its target to $220 from $210, pointing to Pratt and Whitney’s margin recovery and Raytheon’s sensor growth as the specific drivers of profitability expansion through 2028.
That is consistent with what the company itself guided: defense sales are now expected to grow mid- to high single digits for the year, up from the prior mid-single-digit expectation, reflecting the Q1 beat at Raytheon, where margins expanded 150 basis points year-over-year to 12.2%.
The risk to watch is commercial aftermarket. Pratt’s commercial aftermarket was up 19% year-over-year in Q1, but the Iran conflict has raised jet fuel costs and compressed airline margins across the industry.
CFO Neil Mitchill even noted on the Q1 call that provisioning and mods and upgrades at Collins are the channels most vulnerable to airline deferrals if the stress extends.
RTX has not yet seen demand change, but it is monitoring closely by geography, customer, and program.
Is RTX Stock Undervalued in 2026? TIKR’s $218 Model Says the Selloff Went Too Far
TIKR’s base case values RTX stock at approximately $218 by December 2030, implying around 20% total return from the current price of approximately $181, or roughly 4% annualized over the next four and a half years.
If Raytheon’s margin trajectory continues and the GTF fleet management plan finishes on schedule, the high case reaches approximately $327, representing around 81% total return at roughly 7% annualized through 2030. That scenario hinges on RTX holding around 5% revenue growth annually with net income margins expanding to around 11%.
The base case rests on around 5% revenue CAGR and margins near 11%, consistent with the company’s own guidance and Raytheon’s current 12.2% operating margins pointing toward continued improvement. The low case, at approximately $220, implies around 21% total return at roughly 2% annualized, reflecting a slower margin expansion path.
Given that RTX stock trades roughly 16% below its 52-week high while the company raised guidance, grew Q1 EPS 21%, and holds a record $271 billion backlog with framework agreements not yet reflected in that figure, RTX stock is undervalued at current levels.
Is RTX Stock a Good Investment in 2026?
RTX stock looks undervalued relative to both Wall Street consensus and TIKR’s base case model.
The street’s mean target of around $216 implies approximately 19% upside from the current price of around $181. Q1 2026 EPS of $1.78 was up 21% year-over-year, the company raised its full-year EPS guidance to $6.70 to $6.90, and a record $271 billion backlog provides multi-year revenue visibility.
The key risk is commercial aftermarket exposure if airline profitability continues to deteriorate.
What Do Analysts Say About RTX Stock?
Sixteen of 26 analysts rate RTX stock Buy or Outperform, with a mean price target of around $216 and a high target of around $242.
Jefferies upgraded the stock to Buy on June 4 with a $220 target, citing Pratt and Whitney margin recovery and Raytheon sensor-led growth through 2028.
Citi also flagged RTX stock as a buying opportunity after the defense sector selloff, calling valuations attractive alongside strong sector tailwinds.
Should You Invest in RTX Corporation?
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