Can Rising Counter-Drone Demand Support RTX's Defense Growth Outlook?

Impact · against what's priced in

RTX may see a modest positive catalyst if the accelerated R&D cycle for Coyote Block 2C+RM pulls forward procurement contracts and boosts the Raytheon segment's growth. For LMT and NOC, the news is generic and does not shift the current market skepticism regarding their ability to convert backlogs into higher margins.

RTX+0.30

Challenges what's priced in

The price assumes

Collins and Raytheon segments materially accelerating growth above 5-7%