Morgan Stanley: Aerospace industry stocks see valuation expansion, raises target price for Raytheon Technologies (RTX.US) to $165.

Morgan Stanley recently raised its target price for Raytheon Technologies (RTX.US) from $135 to $165, while maintaining a "overweight" rating on the stock. Morgan Stanley stated that aerospace stocks are currently trading at historically high valuations and the industry is experiencing a period of multiple expansion, reflecting the resilience of the sector. Morgan Stanley expects the overall trend in the industry to "remain essentially unchanged." The firm also noted that the aerospace supply chain is continuing to improve, demand for air travel remains strong, and Boeing Company's production is still growing. Morgan Stanley believes that these factors continue to support their positive outlook on the aerospace sector, especially for companies that combine aftermarket services with original equipment businesses.