Supply chain issues to persist in Q3 for U.S. aerospace & defense industry - Cowen

US Aerospace

11/10/2022 14:21

** Brokerage Cowen says supply chain pinch points will
persist in Q3 for the commercial aerospace & defense industry;
engine domains & hiring/productivity still “wildcards”
    ** Says higher interest rates will dampen non-service
pension income, and tanking equity/bond returns will pressure
non-cash pension items in Q3 for the commercial aerospace &
defense sector
    ** "Supply chain/labor/pension issues suggest mixed Q3
results and guides for defense and commercial aero stocks" -
Cowen
    ** Says fallen prices for some raw materials portend an
eventual dip in component costs, a plus for aftermarket
suppliers that have priced for further inflation
    ** Trims PT for Lockheed Martin Corp  LMT.N  (PT:$425); says
LMT in line with Street, Q3 might see some revenue catch-up but
supply chain, F-16 labor availability remain key risks
 (Reporting by Priyamvada C in Bengaluru)
 ((Priyamvada.c@thomsonreuters.com))