Pentagon Awards Raytheon Technologies $985 Million Contract

The security is trading below its year-to-date breakeven mark

Jake Scott

Deputy Editor

Sep 23, 2022 at 10:27 AM

Raytheon Technologies Corp (NYSE:RTX) just secured a major contract to develop hypersonic attack cruise missile prototypes for the U.S. Air Force. The Pentagon on Thursday confirmed the $985 million contract, with Raytheon beating out defense-sector peers Boeing (BA) and Lockheed Martin (LMT).

Today, however, Raytheon stock is brushing off the upbeat news, and was last seen down 1.7% to trade at $81.89. The shares took a step back on the charts late last month, with pressure forming at its 10-day moving average. RTX is battling its year-to-date breakeven level as well, sitting just over 4% lower in 2022.

Analysts are optimistic towards the security, with seven of the nine in coverage sporting a "buy" or better rating, while only two recommend a tepid "hold." Furthermore, the 12-month consensus target price of $109.39 is a hefty 31.1% premium to the stock's current perch.

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