Soaring about 14% over the past three months, (NYSE: RTX) stock has outperformed the S 500 which has risen about 9% during the same period. And Cai von Rumohr, an analyst at TD Cowen Financial, doesn't think the stock's climb is over. In fact, von Rumohr is optimistic about the stock's potential and recently raised his price target on the aerospace and defense conglomerate from $106 to $115. That implies a 22% upside over the next 12 months or so from its current price.

But one analyst's improved outlook doesn't mean the stock is necessarily a buy. Let's take a closer look at what's underpinning von Rumohr's estimate and whether investors should fortify their portfolios with this leading defense stock.

According to Thefly.com, von Rumohr predicates his upwardly revised price target on two things. First, RTX (formerly Raytheon Technologies) will benefit from growth in its commercial aftermarket business. Second, the company will prosper from increased defense spending in 2025 and 2026.

Continue reading

Source Fool.com