Morgan Stanley Raises Price Target for RTX Following Strong Q2 Earnings
Raytheon Technologies Corporation (RTX) delivered strong second-quarter results on July 23, 2026, with a significant rise in sales and adjusted earnings per share. The company raised its full-year guidance across key metrics including revenue, organic growth, and free cash flow. In response to the performance, Morgan Stanley increased RTX’s price target from $220 to $240 while maintaining an Overweight rating. The firm highlighted Raytheon as a major driver of future earnings potential due to its growing backlog and international demand for missile defense systems. Notably, approximately 75% of Raytheon's portfolio is in air and missile defense products, which are experiencing sustained global interest amid current geopolitical tensions. The five missile defense framework agreements not yet included in the backlog represent a significant untapped revenue opportunity. RTX shares rose sharply following earnings, outperforming broader market indices like the S&P 500 on that day.
Topics: aerospace and defense Morgan Stanley RTX stock analysis