** Bernstein raises PT on U.S. defense firms on expectations of higher demand in 2026
** Brokerage says while 2025 was volatile for defense with modest outperformance overall, 2026 sets up positively after President Donald Trump's post that he wants $1.5 trillion budget
** Adds that L3Harris Technologies LHX.N remains its top choice
** Bernstein says Russia threat has driven European stocks much higher, but has also helped U.S. stocks with rising export sales, which should continue
** "The Office of Management and Budget (OMB) director Vought suggested we could see another large reconciliation package for 2027, which could help passage of an increase," brokerage says
** Following are the new PTs:
Company Name | New PT | Old PT |
Lockheed Martin LMT.N | $586 | $545 |
L3Harris Technologies LHX.N | $398 | $369 |
Northrop Grumman NOC.N | $727 | $696 |
General Dynamic GD.N | $398 | $388 |
Huntington Ingalls HII.N | $412 | $362 |
(Reporting by Parth Chandna)
((Parth.Chandna@thomsonreuters.com;))