Where Will RTX Be in 1 Year?
The aerospace and defense giant disappointed investors in 2023. Still, a snapshot of (NYSE: RTX) at the end of 2024 could show a company in much better shape than it is now. If so, the stock could bounce back strongly next year. Here's what you need to know before buying the stock.
There are two key issues and questions that will drive RTX's share price in the coming year:
The two questions are critical for the company's progression toward its revised target of $7.5 billion in free cash flow (FCF) in 2025. As previously discussed, penciling in a valuation of 20 times FCF, a reasonable valuation for a mature industrial company, and the $7.5 billion leads to a price target of around $104 compared with the current price of $81.32, implying an annual return of 13% over the next two years. Include the dividend that currently yields 2.9%, and it comes to nearly 16%.
Source Fool.com
