Wells Fargo raises RTX stock price target, sees 31% upside potential

A Wells Fargo analyst has increased the price target for RTX stock from $140 to $151, suggesting a potential 31% increase from its current price. The analyst maintains an "overweight" rating on the stock. The analyst's outlook is based on expectations of $8.4 billion in free cash flow for RTX in 2026. This would result in a price-to-free cash flow multiple of 18.2 times, which is lower than some competitors. Despite a strong performance in 2024, challenges remain in the defense sector, including government pricing pressures. Concerns about the sustainability of current spending levels could impact the stock's valuation.