RTX Stock Has 31% Upside, According to 1 Wall Street Analyst

A Wells Fargo analyst recently raised the company's price target for RTX (NYSE: RTX) stock to $151 from a previous target of $140 and maintained an "overweight" rating on the stock. As such, it represents a 31% premium to the current price, but is the new target warranted?The Wall Street consensus has RTX generating $8.4 billion in free cash flow (FCF) in 2026, which, based on the current market cap of $153 billion, would put RTX on a price-to-FCF multiple of 18.2 times 2026 FCF -- the Wells Fargo analyst makes a similar argument based on earnings.As you can see below chart, some of its aerospace and defense peers trade on significantly higher multiples right now, and hitting the price target of $151 would put RTX on a price-to-FCF multiple of just under 24 times FCF in 2026.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool