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RTX (RTX) Names A New Pratt President, Is The Stock Still 17% Undervalued?

Simply Wall St · 18h ago

Leadership change at Pratt & Whitney puts RTX in focus

RTX (RTX) has drawn fresh attention after naming Jill Albertelli as the next president of Pratt & Whitney, a leadership change that matters because this unit anchors a large share of the group’s aerospace and defense activity.

RTX shares trade at US$194.34, with the 1-month share price return down 7.42%, while the 90-day share price return is up 4.27% and the 1-year total shareholder return of 23.71% reflects stronger longer term momentum.

Explore other defense and aerospace companies with comparable contract depth and government exposure in our curated list: 30 resilient stocks with low risk scores.

RTX now trades about 18% below one intrinsic value estimate and roughly 21% under the average analyst target after the recent pullback. Is that discount compensation for real execution risk, or an overreaction to caution around Pratt & Whitney?

Most Popular Narrative: 17% Undervalued

RTX closed at $194.34 against a widely followed fair value estimate of $234.82. The current pullback sits against a narrative that sees meaningful upside based on contracted demand, aftermarket strength, and cash generation potential under an 8.21% discount rate.

RTX’s record backlog of US$289b, supported by a Raytheon rolling 12 month book to bill of 1.77 and US$19.9b of quarterly awards for systems such as Patriot, AMRAAM, AIM 9X and LTAMDS, points to multi year conversion of contracted demand into revenue and segment operating profit that some investors may not yet fully reflect in valuations.

See why 205 investors see RTX as 17% undervalued.

Result: Fair Value of $234.82 (UNDERVALUED)

Still, the RTX story can change quickly if large 2026 investment plans fail to lift capacity, or if supply chain fixes do not ease casting and microelectronics constraints.

Find out about the key risks to this RTX narrative.

Next Steps

Mixed signals around RTX, with both flagged risks and clear positives on the table, make this a moment to move quickly and form your own judgment using the 4 key rewards and 3 important warning signs.

Looking for more RTX sized investment ideas?

If RTX has sharpened your thinking, do not stop here. Broaden your watchlist with focused tools that surface clear, data backed opportunities across the market.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.