Analyst Note| Burkett Huey, CFA |
Wide-moat-rated Raytheon Technologies reported the first signs of recovery in the commercial aftermarket first quarter and delivered significant sequential improvement in bottom-line results due to the improved operating environment. The firm missed FactSet consensus by a meager 0.7% on sales, but adjusted earnings per share of $0.90 beat consensus by 8.7%. We're raising our fair value estimate by 3.8% to $81 per share as we slightly lower our estimates of medium-term unallocated corporate expense and increase our growth rates at Collins. We view shares as fairly valued at current prices.