Overview
TD Cowen has lifted its price target for RTX Corp. to $225.00 from $210.00 and retained a Buy rating on the shares. The research firm's adjustment follows what it characterized as strong fourth-quarter results from the aerospace and defense company.
Share performance and valuation
RTX is trading at $201.28, roughly 0.99% below its 52-week high of $203.03, after delivering a 58.14% price return over the past year. According to InvestingPro data cited in the research discussion, the stock appears overvalued when compared with its Fair Value estimate.
Rationale for the price-target increase
TD Cowen pointed to multiple factors behind the higher $225 target. The firm said RTX’s initial guidance for calendar year 2026 looks conservative, particularly for the company’s Pratt & Whitney and Raytheon business segments, and expects that guidance and consensus estimates will be revised upward over the course of the year, according to the analyst note.
The new $225 target corresponds to a valuation of 25 times RTX’s estimated calendar year 2026 EV/EBITDA. By comparison, the company currently trades at an EV/EBITDA multiple of 21.01 and a price-to-earnings ratio of 41.36. InvestingPro identifies RTX as "trading at a high EBITDA valuation multiple."
Analyst views and consensus
Analyst price targets for RTX currently span a range from $150 to $230. InvestingPro also lists 13 additional investment insights about the company and highlights a comprehensive Pro Research Report covering RTX among its analysis of more than 1,400 U.S. stocks.
Recent quarterly results
RTX reported fourth-quarter 2025 results that exceeded analysts' expectations. The company posted earnings per share of $1.55 versus a forecast of $1.47, and revenue of $24.2 billion compared with an anticipated $22.69 billion. The earnings release was followed by an increase in RTX shares during pre-market trading.
Market reaction and analyst activity
Despite the strong quarterly numbers and TD Cowen's raised target, no analyst upgrades or downgrades were reported in direct connection with the earnings release.
Conclusion
TD Cowen's adjusted target and maintained Buy rating reflect confidence in RTX's near-term performance and potential upside in 2026 results, while third-party valuation data flag a higher-than-average EBITDA multiple relative to the company's Fair Value estimate.