4 big analyst cuts: RTX pelted with 2 downgrades on word of $3B hit

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Investing.com — Here is your Pro Recap of the biggest analyst cuts you may have missed since yesterday: downgrades at RTX, Sight Sciences , Enphase Energy, and Oracle.

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RTX (NYSE:RTX), formerly Raytheon (NYSE:RTN), was downgraded at both Barclays and RBC Capital Tuesday after the aerospace and defense company said its bottom line would take about a $3 billion hit over the next few years due to a previously disclosed contamination issue with its engine parts, which triggered a massive recall of Airbus jets in July.

Barclays downgraded the company to Equalweight from Overweight and cut its price target to $75.00 from $100.00, writing:

While we expect RTX to grow revenue at a HSD rate as commercial aero continues to recover and prior defense budget increases convert to outlays, we believe the projected margin recovery at Raytheon defense could fall short of expectations while the GTF powder metal issue could impact long term GTF profitability and market share.

Meanwhile, RBC Capital downgraded the company to Sector Perform from Outperform and cut its price target to $82.00 from $105.00, citing what it believes will be ongoing risks to the company's free cash flow outlook, both in terms of executing engine repairs and managing customer concessions.

Shares lost nearly 8% to $76.90 on the disclosure, and were off another 1.3% in recent premarket trading.

Sight Sciences (NASDAQ:SGHT) shares were losing nearly one-third of their value in the premarket after the eyecare tech outfit lowered its Q3 and full-year guidance, and two firms cut the firm to neutral ratings in the wake of the cut.

William Blair slashed the company to Market Perform