Analyst Ratings January 30, 2026

Bernstein Lifts RTX Price Target to $204, Cites Raytheon Margin Strength

Analyst keeps Market Perform rating as Pratt & Whitney outlook remains a constraint amid robust Raytheon backlog and contract wins

By Sofia Navarro RTX
Bernstein Lifts RTX Price Target to $204, Cites Raytheon Margin Strength
RTX

Bernstein raised its 12-month price target on RTX Corp. to $204 from $189 while retaining a Market Perform designation, pointing to stronger-than-expected results in the Raytheon segment. RTX recently posted quarterly and full-year beats, a rising backlog at Raytheon and several sizable contract awards, but the firm signaled ongoing concerns around Pratt & Whitney's demand-supply dynamics.

Key Points

  • Bernstein raised RTX’s price target to $204 from $189 but kept a Market Perform rating due to mixed outlooks across segments - sectors impacted: Defense, Aerospace, Industrials.
  • RTX beat Q4 2025 consensus estimates with adjusted EPS of $1.55 and adjusted revenue of $24.24 billion; full-year revenue was $88.6 billion, up 9.74% - sectors impacted: Markets, Aerospace.
  • Raytheon’s margins exceeded expectations and backlog hit a record $75 billion, with missile and missile defense demand outpacing current production capacity; Pratt & Whitney faces a demand-supply imbalance expected to normalize by decade-end - sectors impacted: Defense, Aviation.

Bernstein has increased its price target for RTX Corp. to $204.00 from $189.00, while leaving its rating at Market Perform, citing the particularly strong performance of the Raytheon business. The new target sits near RTX's most recent share price of $199.88; the stock has been trading close to its 52-week high of $205.36 and has delivered a 57.86% return over the past 12 months. According to InvestingPro data, the shares appear slightly overvalued when judged against a Fair Value assessment.

RTX reported fourth-quarter 2025 results on January 28. The company posted adjusted earnings per share of $1.55, ahead of the consensus estimate of $1.47. Adjusted revenue for the quarter came in at $24.24 billion, topping the consensus expectation of $22.63 billion. For the full year, RTX generated $88.6 billion in revenue, a gain of 9.74%, and reported diluted earnings per share of $4.96.

Bernstein analyst Douglas Harned identified Raytheon as "the standout" performer within RTX, noting margins that exceeded estimates and a record backlog that reached $75 billion. Within Raytheon, Harned highlighted that demand for missiles and missile defense solutions now outstrips current production capacity.

The analyst said the Raytheon strategy is focused on expanding capacity for export demand and on the Golden Dome program for mature products, areas expected to carry higher margins. This operational emphasis has, in Bernstein's view, strengthened the trajectory toward achieving margins of 12% or greater for the segment.

Despite the positive trajectory at Raytheon, Bernstein maintained a Market Perform rating on RTX because of continued uncertainty surrounding the outlook for the Pratt & Whitney division. Pratt & Whitney has projected that the present imbalance between jet engine demand and supply will normalize by the end of the decade. The company is working to boost production and expand capacity for aftermarket repairs by 2026.

Separately, Raytheon has landed several important contract awards. The company received a $1.03 billion contract modification from the U.S. Department of War for production of Lower Tier Air and Missile Defense Sensor systems, covering Year Two requirements for the defense-system production. In addition, Raytheon was awarded a $197 million contract from the U.S. Air Force Life Cycle Management Center to deliver the MS-110 Multispectral Reconnaissance System to the Polish Air Force. That contract includes seven reconnaissance pods and accompanying support services; Poland is noted as the first NATO member to procure this technology.

Outside of Bernstein, other major brokerages have also adjusted their price targets for RTX. Morgan Stanley raised its target to $235, citing the company’s strong positioning for growth and potential margin expansion. UBS raised its target to $208, pointing to healthy demand and margin improvement across RTX’s business lines and forecasting free cash flow that exceeds prior expectations.


Context and implications

The most recent results and contract wins underscore divergent business trends inside RTX. Raytheon’s elevated backlog and capacity constraints in missiles and missile defense signal robust defense demand and potential for sustained margin improvement if capacity can be expanded. In contrast, Pratt & Whitney’s timeline to resolve engine demand-supply imbalance and ramp aftermarket repair capacity introduces continued near-term uncertainty.

Bernstein’s move to raise the target while keeping a Market Perform rating reflects the balance between stronger defense segment momentum and persistent operational questions in the commercial aviation engine business.

Risks

  • Pratt & Whitney’s uncertain recovery timeline for engine demand and supply could weigh on RTX’s overall results and margins - affects Aviation and Industrials sectors.
  • Capacity constraints at Raytheon, while reflecting strong demand, may limit near-term revenue capture until production is expanded - affects Defense manufacturing and supply chains.
  • Valuation considerations: InvestingPro’s Fair Value assessment suggests RTX may be slightly overvalued at current levels, introducing market risk for equity investors - affects Markets and Investment sector.

More from Analyst Ratings

JPMorgan Lifts Chevron Price Target to $181, Citing Cost Cuts and Post-Merger Investment Phase Feb 2, 2026 H.C. Wainwright Sticks With Buy on Summit Therapeutics After FDA Accepts BLA Feb 2, 2026 Mizuho Lifts AXIS Capital Target After Strong 2025 Momentum Feb 2, 2026 JPMorgan Lifts ExxonMobil Target to $140 After Strong Q4 Results; Stock Near 52-Week High Feb 2, 2026 JPMorgan Reaffirms Overweight on Carvana, Cites Durable Online Advantage Feb 2, 2026