Rothschild & Co Redburn initiated coverage on Lockheed Martin (LMT) and Northrop Grumman (NOC). The firm assigned "Buy" ratings.
It set a $650 price target for Lockheed Martin. It set a $680 price target for Northrop Grumman.
Rothschild Redburn bases its ratings on an anticipated generational increase in U.S. military spending.
The analysis highlights that global conflicts, weapons replenishment, and a focus on new technologies drive higher defense investment. Rothschild Redburn cited the proposed fiscal 2027 U.S. military budget as an indicator of this long-term trend.
The firm forecasts revenue and earnings growth for both companies through 2030. This growth is due to strong demand for key programs, including the F-35 fighter jet and B-21 bomber.