1543 GMT - The U.S. defense industry faces a year of changes, triggered by the return of Donald Trump to the White House and the need to renew its aging Navy and Air Force fleets, BofA Securities analysts say. The incoming Trump administration will be positive for the defense industry, they say. But the industrial base isn't strong enough and all military services face budget pressures. Uncertainty will be fuelled by a vocal U.S. Department of Government Efficiency, proposed tax cuts and rising program costs, they say. However, the analysts anticipate a rise in defence spending, contrary to most expectations. Northrop Grumman, Booz Allen Hamilton and Rocket Lab are BofA's top picks in the U.S. Meanwhile, tech firms like Palantir and AXON are uniquely positioned to provide emerging technologies, they add. (cristina.gallardo@wsj.com)
(END) Dow Jones Newswires
January 16, 2025 10:43 ET (15:43 GMT)
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