RTX Corporation: Disappointing Beat And Raise Provides Buy Opportunity
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Dhierin BechaiInvesting Group LeaderFollow5ShareSavePlay(10min)Comment(1)SummaryRTX Corporation delivered a beat-and-raise quarter, with 10% organic sales growth and 21% adjusted EPS growth, but shares fell 4.4%.Guidance was raised modestly—revenue up by $0.5B and EPS by $0.10—falling short of analyst expectations.Defense growth is driven by post-Ukraine budget expansions, while commercial aftermarket sales remain robust; supply chain constraints and cost inflation present near-term risks.I maintain a Buy rating on RTX, with a new 3-year EV/EBITDA-driven price target of $244.34, implying 31% upside and substantial free cash flow growth ahead.Looking for a helping hand in the market? Members of The Aerospace Forum get exclusive ideas and guidance to navigate any climate. Learn More » Alexandre Tziripouloff/iStock Editorial via Getty Images RTX Corporation (NYSE:RTX) shares dropped 4.4% even though the company presented a beat-and-raise quarter. The stock is now down 8.6% since my prior report, underperforming the S&P 500’s gain, and comes atThis article was written byDhierin Bechai23.65K FollowersFollowDhierin-Perkash Bechai is an aerospace, defense and airline analyst. Dhierin runs the investing group The Aerospace Forum, whose goal is to discover investment opportunities in the aerospace, defense and airline industry. With a background in aerospace engineering, he provides analysis of a complex industry with significant growth prospects, and offers context to developments as they occur, describing how they might affect investment theses. His investing ideas are driven by data informed analysis. The investing group also provides direct access to data analytics monitors. Learn more.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. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.