Despite Pratt's Engine Issue, RTX Still Well-Positioned For Market Recovery: Analyst
Portfolio Pulse from Nabaparna Bhattacharya
Susquehanna analyst Charles P. Minervino has reiterated a positive rating on RTX Corporation, despite lowering the price target from $117 to $110. RTX reported a 12% YoY sales growth in Q2 FY23, beating consensus. The company has also increased its FY23 sales expectations. However, due to an issue with Pratt's engine, the analyst has lowered estimates for EPS and FCF for 3Q23/2023. Despite this, Minervino remains confident in RTX's position in the recovering commercial aerospace market.
July 26, 2023 | 6:21 pm
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RTX Corporation's stock may face short-term pressure due to lowered EPS and FCF estimates following Pratt's engine issue. However, the company's strong Q2 FY23 performance and increased FY23 sales expectations may offset this.
The lowered EPS and FCF estimates due to Pratt's engine issue may put short-term pressure on RTX's stock. However, the company's strong Q2 FY23 performance and increased FY23 sales expectations, along with the analyst's positive rating, may help offset this pressure.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100