** Morgan Stanley upgrades ratings on U.S. defense cos L3Harris LHX.N and General Dynamics GD.N to "overweight" from "equal-weight"
** Brokerage says L3Harris is its top value pick among defense cos, citing strong momentum and strategic drivers that position LHX for long-term outperformance
** Says General Dynamics is poised for margin expansion and long-term growth, driven by Gulfstream certifications and a solid cash flow profile
** Brokerage says U.S. defense contractors remain insulated from tariff risks, aided by domestic supply chains and predominant government exposure
** As of last close, S&P 500 Aerospace & Defense index .SPLRCAED up 37.3% YTD
Company | New PT | Old PT | Upside to the stock's last close |
L3Harris | $367 | $350 | 27.2% |
General Dynamics | $408 | $385 | 19.8% |
(Reporting by Apratim Sarkar in Bengaluru)
((Apratim.Sarkar@thomsonreuters.com))