AVAV - Lockheed tops defense stocks as rally marches on; Cowen raises PT to $435

U.S. defense contracting stocks led by Lockheed Martin (NYSE:LMT +3.3%) are in rally mode as Russia's invasion of Ukraine shows no signs of easing. Other notable gainers in Monday's trading include HII +3.5%, NOC +3.4%, LHX +2.7%, GD +1.9%, RTX +1.8%. ETFs: BATS:ITA, XAR, DFEN, FITE, PPA Cowen analyst Cai Von Rumohr raised his Lockheed Martin price target to $435 from $390, saying the conflict is producing support for higher defense spending in the U.S. and Europe, with greater focus on traditional ground warfare systems such as vehicles, missiles and helicopters, which account for ~60% of Lockheed's sales. Because new sales would be for in-production systems, they should be "solidly profitable, but they're unlikely to add to LMT's results" before late 2023 or 2024, von Rumohr writes, keeping Lockheed rates at Market Perform and preferring General Dynamics and Northrop Grumman. With the Aerojet Rocketdyne deal nixed, von Rumohr also thinks

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Lockheed tops defense stocks as rally marches on; Cowen raises PT to $435