RTX Secures 7-Year DoD Missile Deal to Boost Production; PT Raised to $238
Citigroup raised its price target on RTX from $227 to $238, implying over 21% upside, and reaffirmed a Buy rating after RTX landed a seven-year DoD deal to boost Tomahawk production to 1,000 units and AMRAAM output to 1,900 units. RTX’s Q4 sales rose 12% to $24.2 billion.
1. Price Target Increase
Citigroup lifted its price target on RTX from $227 to $238, representing over 21% upside, while maintaining a Buy rating. The upgrade reflects analyst confidence in RTX’s defense segment following recent contract awards.
2. DoD Contract Details
RTX secured a seven-year agreement with the Department of Defense to accelerate production of precision munitions. Tomahawk cruise missile output will rise to 1,000 units annually, and AMRAAM air-to-air missile capacity will expand to 1,900 units per year.
3. Q4 Financial Results and Outlook
In Q4 fiscal 2025, RTX reported $24.2 billion in sales, up 12% year-over-year, with adjusted EPS of $1.55. The company projects 2026 sales of $92–$93 billion and adjusted EPS between $6.60 and $6.80, above prior analyst forecasts.