RTX upgraded to Buy from Hold at Deutsche Bank

Deutsche Bank analyst Scott Deuschle upgraded 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 compounds EBIT like an aerospace stock, the analyst tells investors in a research note. The firm says this makes RTX an attractive way to play the global defense cycle. The company’s “superior” long-term growth and operating leverage inherent in its aerospace businesses as well as its “strong” international revenue mix in defense help it drive a better earnings compounding story than defense names, which barring a multiple derating should allow it to drive superior returns over time, contends Deutsche Bank.