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Morgan Stanley weighs in on defense sector

Published 08/08/2017, 08:39 AM
© Reuters.  Morgan Stanley weighs in on defense sector
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  • Lockheed Martin (NYSE:LMT): Initiated at Overweight, with a $342 PT, saying it has the right balance of segment margin growth, revenue visibility, leading 5-year CAGR and F-35 ramp up over the coming years.
  • Raytheon (NYSE:RTN): Started at Overweight, with a $188 PT, stating the company has leading positions in high demand areas of missile defense and optionality around an A-rated balance sheet.
  • General Dynamics (NYSE:GD): Initiated at Overweight, with a $185 PT, expecting Gulfstream may have difficulty sustaining margins given competitive threats.
  • Northrop Grumman (NYSE:NOC): Started at Equal Weight, with a $279 PT, saying its leading revenue profile is offset by light free cash flow yields and margin growth.
  • Now read: General Dynamics: Another Solid Quarter, Overvaluation Persists


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