Well Fargo lifts PT for defense firms

Hexcel

05/01/2024 11:59

** Wells Fargo lifts PT for defense firms - Boeing  BA.N ,
General Dynamics  GD.N , RTX Corp  RTX.N  and Lockheed Martin
 LMT.N  
    ** Also hikes PT for L3Harris Technologies  LHX.N , Howmet
Aerospace  HWM.N , Hexcel Corp  HXL.N  and Rocket Lab USA
 RKLB.O  
    ** Says upcoming U.S. elections could support defense sector
later in the year, as the stocks have outperformed the market by
9-10% in presidential election years 
    ** "A shift to one-party control of Congress would be a
positive, but early polls don't point to a strong majority for
either party in House or Senate," brokerage says
    ** Says it expects better original equipment growth in 2024,
particularly given easy compares on 2023 production delays
    ** Adds that a strong production uptick could push margins
even higher
 Company        New PT      Old PT
 Boeing         $280        $230
 General        $290        $264
 Dynamics                   
 Lockheed       $482        $450
 Martin                     
 RTX Corp       $91         $82
 L3Harris       $250        $230
 Technologies               
 Howmet         $60         $55
 Aerospace                  
 Hexcel Corp    $81         $64
 Rocket Lab     $6          $5
 USA                        
 
 (Reporting by Aishwarya Jain in Bengaluru)
 ((Aishwarya.Jain@thomsonreuters.com;))