Deutsche Bank analyst Scott Deuschle upgraded the numbers RTX (RTX) to buy from hold with a price target of $140, up from $131. RTX trades like a defense stock and is valued like a defense stock, but composes EBIT like an aerospace stock, the analyst tells investors in a research note. The company says this makes RTX an attractive way to respond to the global defense cycle. The company’s “superior” long-term growth and operating leverage inherent in its aerospace business, as well as its “strong” international revenue mix in the defense sector, help the company generate a better earnings story than defense names, which, barring a multiple derating , should allow for superior returns in the long term, says Deutsche Bank.
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