Why RTX's Engine Troubles Spell Bad News: BofA Analyst Lowers Rating To Underperform
Portfolio Pulse from Shivani Kumaresan
BofA Securities analyst Ronald Epstein has downgraded RTX Corporation's shares to Underperform from Neutral and lowered the price target from $95 to $75. This is due to anticipated cash headwinds of around $3 billion from 2023-2025, caused by issues with the Pratt & Whitney GTF fleet. The analyst believes RTX will underperform until there is a clearer understanding of the necessary fixes, customer concessions, and organizational changes. The analyst also highlighted that Boeing Company took two separate charges related to 737 MAX customer concessions, with the final charge ending up 47% higher than originally anticipated.
September 14, 2023 | 5:03 pm
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RTX Corporation's shares have been downgraded due to anticipated cash headwinds of around $3 billion from 2023-2025, caused by issues with the Pratt & Whitney GTF fleet.
The downgrade of RTX Corporation's shares by BofA Securities analyst Ronald Epstein is due to anticipated cash headwinds of around $3 billion from 2023-2025, caused by issues with the Pratt & Whitney GTF fleet. This is expected to negatively impact the company's stock price in the short term.
CONFIDENCE 100
IMPORTANCE 100
RELEVANCE 100
NEUTRAL IMPACT
The analyst highlighted that Boeing Company took two separate charges related to 737 MAX customer concessions, with the final charge ending up 47% higher than originally anticipated.
The mention of Boeing Company in the article is in relation to the company taking two separate charges related to 737 MAX customer concessions, with the final charge ending up 47% higher than originally anticipated. This is used as a comparison to the situation of RTX Corporation and does not directly impact Boeing's stock price.
CONFIDENCE 100
IMPORTANCE 50
RELEVANCE 50