2024-05-31 16:00:00 ET
Summary
- Despite RTX's outperformance compared to the wider market, the stock continues to offer compelling upside potential and dividend investment thesis here.
- Its growing backlog across commercial and defense aerospace markets also offers great insights into its long-term top/ bottom lines, further aided by the management's cost reduction initiatives.
- RTX's powdered metal remediation is already underway, with the management reporting peak AOG by FQ1'24 and things to moderate through 2026, naturally resulting in reduced penalty charges.
- Combined with its reasonable valuations and recently raised dividends, we are maintaining our Buy rating here.
We previously covered RTX Corporation ( RTX ) in March 2024, discussing its excellent FY2023 results and growing backlogs, attributed to the uncertain geopolitical landscape and recovering passenger travels....
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RTX Corporation: Commercial/ Defense Aerospace Spending Remains Robust, Maintain Buy