Lockheed Martin upgraded to Overweight from Equal Weight at Morgan Stanley

Morgan Stanley upgraded Lockheed Martin (LMT) to Overweight from Equal Weight with a price target of $575, up from $525. Concerns over the trajectory of U.S. defense spending and potential Department of Government Efficiency headwinds have kept defense investors largely on the sidelines, but a number of developments over the past few weeks point to an improving sector backdrop, the analyst tells investors in a research note. The firm updated the defense sector to Attractive from In-Line as it contemplates a $1 trillion U.S. defense budget and potential for increased international exports. Morgan Stanley cites the improved defense backdrop for the upgrade of Lockheed Martin as well as “continued robust demand” for missiles and missile defense products.