Key Highlights

  • Deutsche Bank named GE Aerospace (NYSE:GE) its top pick and downgraded RTX to Hold on October 13, 2026, ahead of big earnings for both on October 20.
  • The price targets, the reasons for each call and the stocks' reactions were not captured in the information gathered, so the thesis cannot be summarised here.
  • Both companies are large engine and defence suppliers, so a pick of one over the other is a relative-value view within the aerospace sector, not a call on the industry.
  • Earnings on October 20, 2026 join Netflix, 3M and General Motors, which makes it a busy day for industrial and consumer names alike. Neither note nor targets were available.

The Calls

Deutsche Bank named GE Aerospace (NYSE:GE) its top pick in aerospace and cut RTX to Hold, according to the information gathered, dated October 13, 2026. Both companies report on October 20, 2026. The bank's price targets, the reasoning and any change to earnings forecasts were not captured. A top pick is the stock an analyst favours most within a coverage group, and a downgrade to Hold means the analyst no longer expects the stock to outperform. The share price moves on the day were not captured. The research note is the primary source for the thesis, estimates and valuation. Estimates and targets were not captured. Top picks within a coverage group are relative calls and do not forecast the whole sector.

Why Positioning Matters

Investors position before earnings to capture a result they expect, so analyst calls that arrive a week ahead can shift sentiment. Commercial aerospace is driven by aircraft deliveries, engine output and the aftermarket for parts and service, which tends to be high margin and recurring. Defence depends on government budgets and contracts. GE Aerospace (NYSE:GE) is described primarily by its commercial engine and services business, while RTX combines engines, aerospace systems and defence. Differences in mix, growth and valuation could explain a relative preference, but the bank's actual reasoning is not available in the information gathered, so readers should avoid assuming it. Aftermarket service revenue is a key profit driver.

Risks and What to Watch

The first risk is that a relative call can be wrong in both directions: both stocks can rise or fall together with the sector. A second is earnings risk, since guidance on October 20 could outweigh any pre-earnings view. A third is supply-chain constraint, which has limited engine and aircraft output across the industry. Investors should read the note, watch delivery and backlog figures, and listen to management on guidance and parts supply. The 10-year yield near 5.2% also affects valuation of long-cycle industrials. This article makes no forecast of earnings and offers no price target of its own. Defence budgets add a different risk to RTX. Supply constraints could affect both.

Where Things Stand

The answer is a relative-value call before earnings. Deutsche Bank prefers GE Aerospace (NYSE:GE) over RTX, which it cut to Hold, ahead of October 20 results. The reasoning, targets and reactions were not captured. Guidance on October 20 will test the call. This is not investment advice. The things to check next are the Deutsche Bank note for the thesis, the delivery and backlog figures on October 20, and management's guidance on engine output and parts supply. GE Aerospace (NYSE:GE) and RTX both carry high expectations, so guidance could outweigh any pre-earnings view. Aerospace stocks also react to supply-chain news and to defence budgets.