RTX Corporation (RTX) Valuation
Rating: Fairly Priced — High
12-Month Fair Value: $155 – $190 – $235
Confidence: HIGH
RTX products are central to the Iran war (Tomahawk, Patriot, SM-6, SM-3, AMRAAM all in active combat). 400+ Tomahawks fired in 72 hours created a multi-year munitions replenishment cycle. $200B Pentagon supplemental request, Golden Dome expanded to $185B, five 7-year framework agreements accelerated by wartime consumption. However, RTX has dramatically underperformed defense peers (flat vs LMT +30%, GD +29%, LHX +69%) due to Trump personally targeting Raytheon, GTF recall extending to 2030, and Merops AI drone disruption ($15K vs $4M Patriot). Updated fair value $190 (up from $172 in v1.0) — near the top of the $162-$219 band. Near-term R/R 0.72:1 (Unfavorable). Long-term R/R 4.15:1 (Highly Favorable). Accumulate below $170.
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