MCKINNEY, Texas - Raytheon (NYSE:RTN), a business segment of RTX (NYSE: RTX), has entered into two Mentor-Protégé Agreement initiatives with the Department of the Navy Office of Small Business Programs. The agreements, announced today, focus on the development of operational Artificial Intelligence (AI) for Department of Defense (DoD) platforms and programs.
Under the sponsorship of NAVAIR and the Office of Naval Research, these three-year contracts will enable Raytheon to guide Anacapa Micro Products, Inc. and Nara Logics, Inc. The mentorship will cover a range of technical areas including system design, software architecture, systems integration, IT security, and authority-to-operate requirements.
Colin Whelan, Raytheon's president of Advanced Technology, emphasized the importance of the Mentor-Protégé Program to the company's supplier diversity small business strategy. He expressed that the partnership will leverage commercial innovations to bolster defense capabilities and support the success of service members.
The DoD's Mentor-Protégé Program, established in 1990, aims to foster the development of small businesses in the defense industry. Raytheon has participated in this federal program since 1991.
The collaboration with Anacapa and Nara Logics is set to expedite the creation of next-generation autonomous capabilities, enhancing decision-making for military personnel. Both CEOs of the protégé companies, Jana Eggers of Nara Logics and Ken Marks of Anacapa Micro Products, expressed pride in their involvement and the anticipated impact on critical mission support.
The initiative is expected to yield a comprehensive technology roadmap for Raytheon, incorporating small business capabilities and aligning with emerging commercial technologies.
Raytheon, a century-old defense solution provider, and RTX, with 185,000 employees worldwide, are recognized leaders in defense and technology sectors. The conglomerate, headquartered in Arlington, Virginia, reported 2023 sales of $69 billion.
This announcement is based on a press release statement.
In other recent news, RTX Corp. has been the subject of several analyst updates following its strong second-quarter earnings report. The company posted earnings per share of $1.41, surpassing consensus estimates, driven by a 10% growth in organic sales, including a 19% increase in commercial original equipment sales. As a result, JPMorgan (NYSE:JPM), TD Cowen, RBC Capital Markets, Baird, and UBS all raised their price targets for RTX Corp.
JPMorgan increased its price target for RTX Corp. to $130.00 from the previous $110.00, citing the company's improved financial performance. TD Cowen also raised its price target for RTX Corp. to $142.00 from the previous $115.00, highlighting the new CEO, Chris Calio's effective approach to addressing legal and contractual liabilities.
RBC Capital Markets increased its price target for RTX Corp. to $115 from the previous $102, following the company's announcement of its second-quarter earnings. Baird increased its price target for RTX Corp. to $115 from the previous $105, noting the company's consistent performance across all business segments. UBS raised its price target for RTX Corp. to $117.00 from the previous $107.00, following the company's strong second-quarter earnings report.
These recent developments reflect analysts' positive outlook on RTX Corp.'s financial performance and future prospects.
InvestingPro Insights
Raytheon Technologies Corporation (NYSE: NYSE:RTX), a key player in the Aerospace & Defense industry, has shown a strong performance in recent times, with significant returns over the last week and month. According to InvestingPro data, the company's stock price has seen a 9.81% total return over the past week and a 13.51% return over the past month, reflecting investor confidence in the company's operations and growth prospects. This aligns with the announcement of Raytheon's new Mentor-Protégé Agreement initiatives, which could further solidify its position in the defense sector and enhance its operational AI capabilities for the DoD.
With a market capitalization of $151.33 billion, Raytheon's financial stability is underscored by its moderate level of debt and its ability to maintain dividend payments for 54 consecutive years, boasting a dividend yield of 2.21%. The InvestingPro Tips highlight management's aggressive share buyback strategy and the expectation for net income growth this year, which could be indicative of the company's robust financial strategy and positive outlook.
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