Why RTX Stock Is Gaining Altitude Today
A Wall Street analyst believes aerospace and defense giant RTX (NYSE: RTX) is due for a rebound as the company addresses its engine issues. Investors are taking notice, sending RTX share up by as much as 2.7% on Thursday morning.
2023 was a tough year for RTX, the aerospace and defense company formerly known as Raytheon Technologies. The company's Pratt Whitney unit was hit by the discovery of a manufacturing issue with its workhorse PW1100G-JM turbofan engine. The problem, caused by impurities in a powder metal that was used to manufacture engine parts, could cause those parts to degrade faster than normal.
Planes have been grounded, and the engines are being inspected on an accelerated schedule to determine what repairs are needed, but addressing the issue will take at least a year, and cost RTX billions of dollars for fixes and customer compensation.
Source Fool.com
