Summary
- Raytheon Technologies, while being a giant in the aerospace sector, started the year with just $164 million.
- Raytheon Technologies continues to have a nice defense product portfolio.
- The big bonus this company has is the revival of commercial aircraft activities.
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I recently started coverage for Raytheon Technologies (RTX) and in my first piece I had a look at the suspension of a very specific deal for offensive weapon systems. Nevertheless, I do believe that Raytheon Technologies aided by its commercial aircraft division has a nice road ahead while there will be margin expansion in the defense business even with a backdrop of plateauing defense budgets. So, I'm not too worried about the value that this company can offer investors.
Source: Raytheon Technologies
I still think it's interesting to look at how contracts are developing, so parallel with launching coverage for Raytheon Technologies I'm also covering their monthly contract announcements. In this report I will be looking at the contract announcements from January 2021, and while monthly contract announcements will not sway us one way or the other, it provides us a way to monitor contract awards and maybe even detect trends early on. So, overall you will be getting a bit more color to the overall picture.
While Raytheon Technologies is one of the biggest defense contractors, they had a pretty slow start of the year in terms of dollar value but I do not see that as a reason to worry. If anything, it probably shows us that even the biggest contractors have low contract inflow months as well.
