Raytheon Technologies (RTX) shares are testing their lows since October 2022 and are trading near $85.
❗️ Significant pressure on the stock came from reports of a defect in aircraft engines manufactured by a subsidiary of Pratt & Whitney. In particular, microscopic contamination was found in the metal used to assemble the Airbus A320, leading to cracks with prolonged use.
🧐 The expert commission determined that 1.2 thousand devices out of 3 thousand installed on aircraft should be removed and sent for inspection. This means that airlines around the world will decommission about 600 aircraft, which could cause significant financial losses, and, as a result, lawsuits against Pratt & Whitney.
📉 Analysts at the financial conglomerate Morgan Stanley predicted a further decline in RTX quotes to $75.