RTX Corporation (NYSE: RTX) has climbed more than 40% this year as demand for commercial and defense aerospace remains strong. The stock trades near $179/share, close to its 52-week high, reflecting investor confidence in the company’s improving fundamentals and balanced exposure across the aviation industry.
Recently, RTX secured a multibillion-dollar contract from the U.S. Air Force to upgrade radar and missile defense systems, expanding its Next Generation Interceptor and Patriot programs. The company also announced new production milestones at Pratt & Whitney, easing prior engine supply constraints that had weighed on margins. These moves highlight RTX’s continued progress in strengthening operations and supporting long-term defense modernization efforts.
This article explores where Wall Street analysts think RTX could trade by 2027. We have gathered consensus targets and valuation models to outline the stock’s potential path based on current expectations. These figures reflect analyst estimates and are not TIKR’s own predictions.
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Analyst Price Targets Suggest Limited Upside
RTX trades around $179/share today. The average analyst price target is $188/share, which points to about 6% upside. Forecasts show a wide range, reflecting mixed conviction among analysts:
- High estimate: ~$215/share
- Low estimate: ~$150/share
- Median target: ~$178/share
- Ratings: 9 Buys, 3 Outperforms, 7 Holds, 1 Underperform
This modest upside suggests the stock may already reflect most of its rebound from last year’s lows. For investors, that means expectations are balanced and the market views RTX as a mature, steady compounder rather than a near-term outperformer. Unless new contracts or stronger cash flow guidance emerge, the shares could trade sideways as fundamentals gradually improve.
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RTX: Growth Outlook and Valuation
The company’s fundamentals appear strong, supported by a solid backlog and consistent cash generation:
- Revenue is projected to grow about 6–7% annually through 2027
- Operating margins are expected to stay near 13–14%
- Shares trade at roughly 20× forward earnings, in line with long-term averages
- Based on analysts’ average estimates, TIKR’s Guided Valuation Model using a 20× forward P/E suggests the stock could trade near $168/share by 2027. That implies about 5% downside, or roughly –2.5% annualized returns.
For investors, this points to a stock that looks fairly valued after its strong rally. RTX continues to offer dependable earnings and a balanced mix of commercial and defense exposure, but the valuation leaves little margin for error. Future returns are likely to come from dividends and cash flow stability rather than major price appreciation.
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What’s Driving the Optimism?
RTX continues to benefit from strong aerospace demand and steady defense spending. Its Pratt & Whitney engine division is ramping up production as supply chains stabilize, while Collins Aerospace is seeing solid demand for aircraft systems and avionics upgrades. Together, these businesses provide stable revenue visibility and diversification across both commercial and defense markets.
Management’s focus on cost control and cash flow efficiency is also paying off. Free cash generation is improving, and margin expansion remains achievable as manufacturing bottlenecks ease. For investors, this shows RTX’s core operations are positioned to deliver consistent earnings growth even in a slower macro environment.
Bear Case: Valuation and Execution Risk
Despite these strengths, RTX’s valuation already reflects much of the recovery. With shares trading near record highs, any delay in new contract awards or defense budget headwinds could limit upside. The commercial aerospace cycle also remains sensitive to airline spending and broader economic conditions.
For investors, the main risk lies in expectations. RTX may continue to perform well operationally, but if growth slows or costs rise, the market could move toward lower valuation multiples. The company’s defensive nature helps cushion downside, yet it also caps the potential for meaningful outperformance.
Outlook for 2027: What Could RTX Be Worth?
Based on analysts’ average estimates, TIKR’s Guided Valuation Model suggests RTX could trade near $168/share by 2027. That represents about 5% downside, or roughly –2.5% annualized returns from current levels.
While RTX remains a high-quality business, the valuation already assumes ongoing strength in both commercial and defense operations. To deliver meaningful upside, RTX would likely need stronger contract momentum or better-than-expected margin gains. Without that, investors should expect stable dividends and modest long-term returns rather than aggressive price gains.
For investors, RTX looks like a dependable compounder built on aerospace and defense resilience, but after a strong rebound, the path forward appears steady rather than spectacular.
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