RTX headed for a fourth straight day of gains on Wall Street upgrades, while Wells Fargo raised its price target on SiriusXM by more than 66% on higher spectrum assets valuation.
- TD Cowen raised its price target on RTX to $240, while maintaining a ‘Buy’ rating, adding that RTX drove a strong quarter even before pending missile contracts were included.
- RTX unit Rockwell Collins recently secured a $332.6-million contract to supply parts for F-15, F-16, and F-18 aircraft.
- Wells Fargo raised the valuation of Sirius XM’s spectrum to $5 billion, over increasing demand for mid-band spectrum.
RTX Corp (RTX) and Sirius XM (SIRI) hit new 52-week highs on Monday, with RTX heading for a fourth straight day of gains following price target hikes on Wall Street that followed a better-than-expected second-quarter print, while Wells Fargo raised its target on SiriusXM by more than 66% on a higher valuation of the company’s spectrum assets.
At the time of writing, SIRI stock was up around 5%, while RTX shares gained 3.5%.
Results, Contracts Keep Momentum Going For RTX
On Monday, TD Cowen raised its price target on RTX to $240 from $225, while maintaining a ‘Buy’ rating, according to The Fly. This represents an upside potential of over 9% from current levels.
The brokerage said RTX delivered a strong quarter with robust bookings, even before pending missile contracts were included. It also noted that declining geared turbofan (GTF) aircraft-on-ground levels have eased concerns over potential additional provisions related to powdered metal issues.
Jefferies also lifted its price target to $250 from $220, keeping a Buy rating. The firm said RTX’s fundamentals continue to improve across its businesses and raised its estimates following the earnings report.
Last week, RTX reported a 14% increase in second-quarter sales to $24.7 billion, a higher profit of $1.57 a share, and raised both its full-year earnings guidance to $7.10 – $7.25 per share and its annual sales forecast to $95-$96 billion.
On Friday, RTX unit Rockwell Collins secured a $332.6 million contract to supply helmet-mounted cueing system spares and repairs for F-15, F-16, and F-18 aircraft used by the U.S. military and several allied nations.
Retail sentiment surrounding RTX trended in the ‘extremely bullish’ zone over the past 24 hours, accompanied by ‘high’ message volumes. The stock has gained 17.6% so far this year.
Wells Fargo Values Sirius XM’s Spectrum At $5B Compared To $1B Earlier
Sirius XM drew fresh attention after Wells Fargo upgraded the stock to ‘Equal Weight’ from Underweight and raised its price target to $30 from $18, citing a sharp increase in the estimated value of the company’s spectrum assets.
The brokerage said it now values Sirius XM’s spectrum at $5 billion, up from $1 billion, as demand for mid-band spectrum grows, particularly with SpaceX’s push into the U.S. mobile market.
Sirius XM is set to report second-quarter results on July 30 and recently declared a quarterly dividend of $0.27 per share, payable on August 26.
Retail sentiment around SIRI on Stocktwits remained ‘bearish’ over the past 24 hours. However, the stock has seen decent buying interest so far this year, gaining more than 52%.
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