** Morgan Stanley lifts PT on U.S. defense companies
** Brokerage says ongoing government shutdown will drive conservatism in 2026 outlook, with upward revisions materializing as funding picture clears up
** "Demand across aerospace remains robust within commercial aftermarket and aircraft backlogs remain largely sold out through the decade," Morgan Stanley says
** Says rare earth supply within the Aerospace supply chain remains a watch item, though it has not yet seen any implications for the sector
** Says it sees a short-term shutdown as largely manageable for Primes, but notes a longer-term shutdown could add challenges for the sector
** Following are the new PTs:
Company Name | New PT | Old PT |
Lockheed Martin LMT.N | $630 | $530 |
Northrop Grumman NOC.N | $720 | $625 |
General Dynamics GD.N | $360 | $328 |
L3Harris Technologies LHX.N | $350 | $250 |
(Reporting by Parth Chandna)
((Parth.Chandna@thomsonreuters.com;))