Raytheon Takes Flight, Boeing Needs More Than Hype: Analyst

While RTX Corp RTX is set to gain altitude with its steady growth trajectory, Boeing Co BA still has to prove it can deliver beyond just maintaining expectations.

Analyst Seth M. Seifman breaks down why RTX, formerly Raytheon Technologies Corp., is the preferred pick while Boeing remains a work in progress.

Raytheon's Growth Story Gains Altitude

RTX remains a “top pick” for 2025, with Seifman highlighting its potential for growth and margin expansion across its business segments.

The firm sees an opportunity for RTX to benefit from “increased clarity on the FCF outlook,” making it a strong contender in the aerospace and defense sector. The analyst maintains a bullish stance on RTX, favoring its long-term trajectory over other names in the industry.

Read Also: Aerospace Ready To Take Off – Goldman Sachs Reveals 11 Top Picks In The Sector

Boeing Needs More Than Just Expectations

Boeing, on the other hand, is facing a critical test.

While the company has struggled with “much disappointment,” the analyst believes that merely “emerging from Q4 with the outlook intact” may not be enough.

Investors need to see Boeing build and deliver aircraft at scale to restore confidence. While short-term cash outflows are expected in the fourth quarter of 2024 and into 2025, the bigger concern remains whether the company can execute effectively.

Northrop Grumman, ATI Also In Focus

Among other defense names, Northrop Grumman Corp NOC stands out as a stock poised for a “clean quarter,” with the potential to differentiate itself amid concerns about defense budgets and industry structure.

Meanwhile, ATI Inc. ATI is expected to report “good enough” results, though a dramatic turnaround in execution is unlikely.

Outlook: Betting On Stability Over Uncertainty

While Boeing's stock could see short-term relief if it meets expectations, Seifman leans toward stocks with greater clarity.

RTX remains the favorite, as its business segments show consistent improvement. With continued uncertainty over Boeing's execution, investors may look to Raytheon for a more stable flight path in the A&D sector.

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