As previously reported, Morgan Stanley analyst Rajeev Lalwani upgraded Northrop Grumman (NOC) to Overweight from Equal Weight and raised his price target for the shares to $418 from $335, citing his view that an opportunity for continued outperformance exists in Defense stocks. Congress and the administration have both highlighted a need for continued investment in national security and the recently signed 2-year budget deal "effectively does away with the remaining sequestration budget caps," noted Lalwani. In that environment, he believes Northrop is well positioned given its longer duration capability and high-end technology focus. Lalwani, who also initiated coverage of L3Harris Technologies (LHX) with an Overweight rating and $259 price target this morning, contends that Northrop and L3Harris "stand out on multiple levels" from the other Defense Primes.

Get caught up quickly on the top news and calls moving stocks with these five Top Five lists. 1... To see the rest of the story go to thefly.com. See Story Here

Get caught up quickly on the top news and calls moving stocks with these five Top Five lists. 1... To see the rest of the story go to thefly.com. See Story Here