Did Long-Term U.S. Missile Contracts Just Shift RTX's (RTX) Defense Modernization Investment Narrative?

Raytheon, an RTX business, has secured long-term agreements with the U.S. Department of Defense to expand production of key missiles over several years. These contracts emphasize RTX’s deep involvement in U.S. defense modernization and high-volume weapons supply, reinforcing its defense pillar while potentially increasing its risk profile due to capital-intensive production and existing debt. The significant duration and scale of these agreements prompt a re-evaluation of RTX’s investment narrative, especially considering existing debt and varying fair value estimates among analysts.