Raytheon shares close higher on Friday, US Air Force awards company with $2 billion defense contract

Raytheon Technologies Corp (RTX) announced last week that it had been awarded a $2 billion contract by the US Air Force in relation with development and manufacturing of a nuclear-armed cruise missile.

The company also said that the long-range standoff weapon (LRSO) would be produced in Tucson, Arizona, and would probably be completed in February 2027.

The new weapon is to replace the aging air-launched cruise missile that was used in the early 1980s with a 10-year design life.

Raytheon shares closed higher for a third consecutive trading session in New York on Friday. The stock went up 0.56% ($0.48) to $86.70, after touching an intraday high at $87.00. The latter has been a price level not seen since June 25th ($87.40).

Shares of Raytheon Technologies Corp have risen 21.24% so far in 2021 compared with a 15.87% gain for the benchmark index, S&P 500 (SPX).

In 2020, Raytheon Technologies Corp’s stock went down 19.04%, thus, it underperformed the S&P 500, which registered a 16.26% gain.

Analyst stock price forecast and recommendation

According to TipRanks, at least 11 out of 13 surveyed investment analysts had rated Raytheon Technologies Corp’s stock as “Buy”, while 2 – as “Hold”. The median price target on the stock stands at $95.17.