BUZZ-Street View: RTX set to fly high despite industry headwinds

Aerospace and defense major RTX's RTX.N Q4 profit and revenue beat estimates on Tuesday, as demand for its aircraft parts and repair services benefited from airlines flying older, maintenance-intensive planes to cope with a jet shortage

Median PT of 24 brokerages covering stock is $135.50 - LSEG data

CLEARING THE RUNWAY

RBC ("outperform," PT: $150) sees limited supply of engine parts driving up prices for co's Pratt and Whitney unit, which produces engines for Airbus' A320neo jets; also expects demand for new engines to boost prices of the unit's Geared Turbofan (GTF) engine

"We believe the company will continue to see upside as the fleet dynamics support further aftermarket spending on legacy engines," says RBC

J.P.Morgan ("overweight," PT: $150) says original equipment (OE) growth will be limited to mid-single digits due to Boeing BA.N strike, but organic growth recovery will boost leverage and expand margins

Morgan Stanley ("equal-weight," PT: $135) expects steady growth in the commercial OE segment through 2025, despite Collins Aerospace, a subsidiary of RTX, experiencing a temporary revenue decline due to lower 737 MAX production

BofA Global Research ("buy," PO: $145) sees RTX benefiting from strong demand in both commercial aerospace and defense, driving continued growth