Shares of RTX Corp. (formerly known as Raytheon Technologies Corp.) experienced a slight decline of 0.2% during morning trading on Thursday, which marked the first day under the aerospace and defense contractor’s new name. This drop comes after the company’s announcement that certain Pratt & Whitney airline jet engines would require inspection and removal from service due to contamination in powdered metal components.
Over the past two sessions, the stock had already fallen by 11.0% in response to this news. Analyst Ronald Epstein from BofA Securities further downgraded the stock from buy to neutral, while also decreasing his price target from $220 to $95. In a note to clients, Epstein highlighted the recent powdered metal issue and suggested that smoother times for Pratt & Whitney may be further away than expected. He also mentioned that investor patience with the obstacles faced by RTX is wearing thin, transforming the narrative into a “show me story.”
In the last three months, RTX Corp.’s stock has declined by 13.3%, juxtaposing the 11.3% gain of the S&P 500 during the same period.