Deutsche Bank Adjusts Aerospace Targets: Bullish on Howmet, Cautious on RTX

Key Facts

Amid a strategic re-evaluation of the aerospace and defense sector, Deutsche Bank analysts have updated valuation models to reflect shifting supply chain dynamics and global demand. According to reports, the bank raised its price target for Howmet Aerospace from $320 to $338, following the company's recent guidance upgrade and index inclusion. Conversely, the price target for RTX was lowered from $240 to $228, though analysts maintained their "Buy" rating on the stock.

This divergence in targets comes as the sector navigates varying operational pressures; Howmet has capitalized on advanced component demand, while RTX continues to manage technical challenges despite a robust backlog. In comparison to peers, GE Aerospace recently reported strong earnings that bolster general optimism in the engine sector, per market data. Notably, RTX shares have been trading off their yearly highs, prompting the price target adjustment to align with current market conditions.

Monitoring current price levels, HWM closed at $277.91, while RTX stood at $201.37 (close July 6, 2026). Traders are keeping a close watch on macroeconomic data affecting manufacturing costs, noting that the ISM Manufacturing PMI released on July 1 came in at 53.3, signaling continued expansion in US industrial activity—a critical factor for the near-term growth of aerospace and defense firms.