RTX Stock Has 30% Upside, According to 1 Wall Street Analyst
's (NYSE: RTX) stock is down more than 5% over the last year amid operational difficulties in its commercial aerospace and defense businesses. That said, a Wells Fargo analyst recently upgraded RTX (formerly Raytheon Technologies) from "overweight" to "equal weight" and set a $120 price target on the stock. That suggests the stock price could jump 30% over the next 12 months or so.
First, RTX's Pratt Whitney business discovered a potential contamination in the powder coating used to make engine turbine discs, causing a multi-billion-dollar hit to earnings and cash flow. Engines will need to be removed and inspected over a few years.
Second, in common with other leading defense businesses, RTX suffers margin pressure from soaring raw material prices and supply chain challenges.
Source Fool.com
