Shares of Raytheon Technologies Corp. (NYS:RTX) rose 1.2% in premraket trading Friday, bouncing off a 7-week low in the previous session, after Vertical Research Partners analyst Robert Stallard turned bullish on the aerospace and defense company, citing valuation and the likely recovery in the aerospace industry. The stock was currently the only Dow Jones Industrial Average (DOW:DJIA) component trading higher in the premarket. Stallard said it could be early to be buying an aerospace name for a recovery, as he hasn't yet seen a set of actual numbers for the merged company and investors appear unsure whether the company is and aerospace or defense company. "As a result, we think this has created a decent risk/reward set-up at the current price, and we are thus upgrading Raytheon Technologies from hold to buy," Stallard wrote in a note to clients. Until April 3, Raytheon Technologies was known as United Technologies, until the spinoffs of Carrier Global Corp. (NYS:CARR) and Otis Worldwide Corp. (NYS:OTIS) were completed. Raytheon's stock has dropped 34.2% year to date through Thursday, while the Dow has lost 9.9%.
July 10, 2020, 6:22 a.m. EDT