RTX stock reacts to Jefferies upgrade and fresh defense contract momentum

RTX Corp (RTX) drew fresh attention after Jefferies raised its rating to Buy, highlighting profit margin trends, aerospace engine aftermarket opportunities, and the company’s growing book of defense work, including the recent US$515 million SPY-6 radar contract.

Recent momentum has been mixed, with a 2.4% 30 day share price return and a decline of around 13.7% over 90 days. However, a 32.2% one year total shareholder return and 94.1% three year total shareholder return point to a strong longer term run, helped by Jefferies’ upgrade and fresh defense contract news.

If RTX’s defense and aerospace story has your attention, it can be useful to see what else is moving in related areas such as advanced robotics and automation via the 33 robotics and automation stocks

With RTX returning 32.2% over one year, trading around US$180.99 and sitting roughly 19.2% below the average analyst price target near US$215.73, is there still a buying opportunity here, or is the market already pricing in future growth?

Most Popular Narrative: 16% Undervalued

RTX closed at $180.99, while the most followed narrative pegs fair value closer to $215 per share. This frames the recent move after the Jefferies upgrade in a wider story about engines, defense programs, and margins.

Robust and growing backlog, highlighted by a 1.86 quarter book-to-bill ratio, $236 billion backlog (up 15% year-over-year), and major new international contracts (e.g., EU, MENA, Asia-Pacific) indicate RTX is well-positioned to benefit from sustained increases in global defense spending and heightened geopolitical tensions, setting up strong visibility for future revenue growth.

Want to see what is behind that fair value gap? The narrative focuses on disciplined revenue growth, firmer margins, and a richer earnings multiple tied to those outcomes.

Result: Fair Value of $215.27 (UNDERVALUED)

However, this depends on RTX addressing jet engine reliability and cost overrun issues at Pratt & Whitney, and on the company avoiding sharper cuts or delays in key defense budgets.

Next Steps

Given the mix of concerns and optimism in the story so far, it makes sense to check the data yourself and move quickly to your own view by weighing the 4 key rewards and 2 important warning signs

Looking for more investment ideas?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.