Overview
BofA Securities raised its price target on RTX Corp. to $230.00 from $215.00 on Monday and reiterated a Buy rating on the aerospace and defense company. The revised target equates to about 15% potential upside from the stock's then-current price of $200.93, with shares trading close to a 52-week peak of $205.36.
Drivers behind the change
The firm attributed the higher target to what it describes as RTX "turning the corner" on challenges tied to its Geared Turbofan (GTF) engine program. BofA flagged improved visibility around that program as a key reason for its more constructive stance. The research note also emphasized broad demand tailwinds supporting the company's commercial and after‑market activities.
BofA's valuation is anchored to a 2027 EV/EBITDA multiple of 21x for RTX, which the firm contrasted with a 14x multiple for the S&P 500. That spread indicates BofA expects RTX to trade at a premium to the broader market on the basis of its outlook.
Financials and contract wins
Recent company results and contract awards reinforced the positive view. RTX reported fourth-quarter 2025 adjusted earnings per share of $1.55, beating the consensus estimate of $1.47. Adjusted revenue for the quarter came in at $24.24 billion, ahead of the expected $22.63 billion. These results underpin the view of improving operational performance.
On the defense front, the Raytheon segment secured a $1.03 billion contract modification for production of Lower Tier Air and Missile Defense Sensor systems, as announced by the U.S. Department of War. Raytheon also received a $197 million award from the U.S. Air Force Life Cycle Management Center to provide the MS-110 Multispectral Reconnaissance System to the Polish Air Force.
Analyst landscape and internal capacity plans
Other analysts have also adjusted their outlooks for the company. Bernstein raised its price target to $204, citing strength in the Raytheon business, while Morgan Stanley lifted its target to $235 and kept an Overweight rating, pointing to strong growth prospects and potential margin expansion.
Within RTX, Pratt & Whitney's management expects to reach a balance between jet engine demand and supply by the end of the decade. The division is working to accelerate production and expand aftermarket repair capacity in response to elevated demand and rising prices.
Market performance
The stock's recent rally has been notable: RTX shares have risen 58.73% over the past year and 29.21% over the last six months, according to the data cited in the research note. Those gains accompany the firm's belief that the company's defense exposure is "entering a period of reignited growth." BofA highlighted that defense strength as an additional pillar supporting its positive outlook.
Bottom line
BofA's move to raise its price target to $230 reflects a combined view that operational headwinds tied to the GTF program are easing, demand conditions are favorable, and defense-related revenues are strengthening. The bank's valuation implies RTX should trade at a premium multiple relative to the S&P 500 if those expectations materialize.