RTX downgraded to Sector Perform from Outperform at RBC Capital

RBC Capital downgraded RTX to Sector Perform from Outperform with a price target of $82, down from $105, after the company provided an update on the impact of the recently disclosed powder metal issue with its GTF engine. The analyst sees continued risks to the RTX’s free cash flow outlook from both execution on the engine repairs and the customer concessions. RTX is still trading above its historical average on an FCF basis, and it will be a “substantial period of time” before investors are confident in its outlook, the analyst tells investors in a research note.