RTX Corporation Settles $8.4 Million Cybersecurity Lawsuit with Potential Upside Amid Analyst Projections

RTX Corporation has agreed to an $8.4 million settlement for cybersecurity compliance issues between 2015 and 2021. Analysts project a potential upside with an average target price of $134.93, and RTX holds an "Outperform" recommendation with a GF Value estimate suggesting further upside.

RTX Corporation, previously known as Raytheon Technologies Corporation, has agreed to a settlement of $8.4 million to address allegations of breaching the False Claims Act. The allegations pertain to Raytheon, a subsidiary of RTX, not adhering to cybersecurity standards in contracts with the Department of Defense. The Department of Justice highlighted these issues, which allegedly took place from 2015 to 2021, before the acquisition by Nightwing [1].

RTX Corporation, based in Arlington, Virginia, was previously known as Raytheon Technologies Corporation. In early 2024, RTX divested its Cybersecurity, Intelligence, and Services division, which was acquired by Nightwing, located in Dulles, Virginia. This settlement resolves the conduct associated with these alleged compliance failures in the cybersecurity domain [1].

Wall Street analysts have forecasted a potential upside for RTX Corp. The average target price for RTX Corp (RTX, Financial) is $134.93, with a high estimate of $160.00 and a low estimate of $99.00. The average target implies an upside of 6.55% from the current price of $126.63 [1].

Based on the consensus recommendation from 26 brokerage firms, RTX Corp's (RTX, Financial) average brokerage recommendation is currently 2.2, indicating an "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies a Strong Buy, and 5 denotes a Sell [1].

GuruFocus estimates suggest an estimated GF Value for RTX Corp (RTX, Financial) in one year is $134.16, suggesting an upside of 5.95% from the current price of $126.63. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at, calculated based on historical multiples, past business growth, and future estimates of the business' performance [1].

RTX Corp (RTX, Financial) reported an 8% organic sales growth in the first quarter of 2025. The company achieved a 120 basis points expansion in segment margins, with strong contributions from all business segments. Commercial aftermarket sales increased by 21%, and defense sales grew by 4% year-over-year [2].

RTX Corp (RTX) generated strong free cash flow, improving by $900 million compared to the previous year. The company made significant progress in its innovation pipeline, including FAA certification for the GTF Advantage and advancements in the LTAMDS program [2].

However, RTX Corp (RTX) faces potential cost impacts of $850 million due to tariffs, which could affect profitability if they remain in place. The company has not included potential tariff impacts in its outlook for the year, indicating uncertainty in financial projections [2].

References:
[1] https://www.gurufocus.com/news/2821390/rtx-faces-84m-settlement-over-alleged-cybersecurity-compliance-failures-rtx-stock-news
[2] https://www.gurufocus.com/news/2822831/rtx-increases-quarterly-dividend-by-79-rtx-stock-news

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