RTX Corporation: Commercial/ Defense Aerospace Spending Remains Robust, Maintain Buy

Summary

• Despite RTX's outperformance compared to the wider market, the stock continues to offer compelling upside potential and dividend investment thesis here.
• Its growing backlog across commercial and defense aerospace markets also offers great insights into its long-term top/ bottom lines, further aided by the management's cost reduction initiatives.
• RTX's powdered metal remediation is already underway, with the management reporting peak AOG by FQ1'24 and things to moderate through 2026, naturally resulting in reduced penalty charges.
• Combined with its reasonable valuations and recently raised dividends, we are maintaining our Buy rating here.

Colin Anderson Productions pty ltd

We previously covered RTX Corporation (NYSE:RTX) in March 2024, discussing its excellent FY2023 results and growing backlogs, attributed to the uncertain geopolitical landscape and recovering passenger travels.

It had been apparent that the negative

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

The analysis is provided exclusively for informational purposes and should not be considered professional investment advice. Before investing, please conduct personal in-depth research and utmost due diligence, as there are many risks associated with the trade, including capital loss.