BofA Turns More Bullish On RTX, Says Post-Merger Momentum Building Across Segments

B Of A Securities analyst Ronald J. Epstein raised the price forecast for RTX Corporation (NYSE:RTX) to $215 from $175, while retaining a Buy rating.

Recent Earnings

Last week, RTX posted third-quarter 2025 sales of $22.478 billion, beating the $21.314 billion estimate.

Adjusted EPS of $1.70 topped the $1.41 estimate.

RTX raised its 2025 adjusted EPS outlook to $6.10–$6.20 from $5.80–$5.95, versus a $5.95 estimate, and lifted its adjusted sales forecast to $86.5–$87.0 billion from $84.75–$85.5 billion, above the $85.579 billion estimate.

Also Read: Raytheon Scores $5 Billion Coyote Missile Contract as Trump Pushes $1 Trillion Defense Budget

Analyst view

The analyst writes that RTX is finally set to realize the benefits anticipated from the UTX and RTN merger, with momentum building across all segments despite headwinds.

Raytheon is accelerating deliveries (revenue up 10% year-over-year), with a strong book-to-bill of 2.27x and a record backlog of $72 billion in the quarter, says the analyst.

The analyst views the threat of a U.S. government shutdown as minimal, given the large awards secured in September.

Also, Epstein notes that Pratt & Whitney continues to enhance GTF overhaul efficiency, ramp up deliveries, and benefit from aftermarket demand.

The analyst expects further aftermarket growth opportunities from the massive PWC installed base, the extended service life of the V2500 fleet, and the onset of widebody overhauls.

Apart from this, Collins Aerospace is well-positioned to capitalize on steadily improving widebody shop visits, rising deliveries, and growing defense opportunities, adds the analyst.

Epstein projects a meaningful boost to Collins Aerospace Original Equipment volumes on Boeing’s ramp-up of the MAX to 42/month and the 787 to 10/month, and acceleration in Airbus production.

Price Action: RTX shares are down 0.06% at $178.54 at the last check on Monday.

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