Added to YB: 2026-05-05
Pitch date: 2026-05-02
RTX [bullish]
RTX Corporation
-0.63%
current return
Author Info
The Small Cap Strategist We specialize in unearthing undervalued companies largely overlooked by mainstream analysts. Our focus is on finding true bargains: businesses with strong fundamentals, limited downside, and significant upside potential. Sign up for the newsletter.
Company Info
RTX Corporation, an aerospace and defense company, provides systems and services for commercial, military, and government customers worldwide.
Market Cap
$232.7B
Pitch Price
$174.00
Price Target
235.00 (+36%)
Dividend
1.57%
EV/EBITDA
16.90
P/E
32.42
EV/Sales
2.95
Sector
Aerospace and Defense
Category
special_situation
Empty Magazine, Full Pipeline - RTX Corporation
RTX: Raytheon framework deals (Tomahawk to 1,000/yr, AMRAAM to 1,900, SM-6 to 500) = $5-7B incremental annual rev at full ramp per sell-side, but consensus FY27-29 EPS models none of it. Suppliers committed $5B+ capex (Williams $1.25B engine plant, L3Harris $2.3B SRM expansion). Dec '26 reconciliation vote is binary: >80% funding approval = trade on, <50% = exit. SM-3 sustainment IDIQ lifted $8.4B adds $0.11-0.15 EPS/yr (Q3 '26 catalyst). Framework rev prints late '28, drives FY29 EPS revisions from $8.91 to $9.40-9.80. Target $210-235 by mid-'29 (25-35% return + divs). Risks: reconciliation scales down, supplier delays (Williams Module 8, Mk 72 second-source), framework definitization slips. Trades 25x (vs peers 17-21x) on Pratt aftermarket, not framework. Half size now, add full on reconciliation confirmation. Watch L3Harris Missile Solutions IPO (2H '26) at 14-17x EBITDA ($8.7-10.5B EV).
Read full article (23 min)