Citi sees buying opportunity in US aerospace & defense, upside in LMT, RTX

Lockheed Martin

18/05/2026 12:39

** Citigroup says the recent selloff in aerospace and defense stocks, driven by geopolitical uncertainty and fears of weaker defense spending looks overdone and has opened up buying opportunities

** Adds positive near-term calls on Lockheed Martin LMT.N, RTX RTX.N, LOAR LOAR.N and Voyager, citing attractive valuations and sector tailwinds

** Cuts price targets across several aerospace and defense stocks to reflect sector-wide valuation compression, not weaker fundamentals

** Expects aerospace stocks to recover first, helped by strong travel demand, improving flight activity and historically low valuations

** Citi says aftermarket demand remains robust, supported by rising aircraft usage and accelerating military aviation demand signals

** Sees defense stocks rebounding later as political concerns ease and investors refocus on steady underlying growth drivers

** The Dow Jones U.S. airlines sub-index .DJUSAR down 10%, YTD

 (Reporting by Rashika Singh in Bengaluru)

 ((Rashika.Singh@thomsonreuters.com;))