0849 ET - Vertical Research Partners is neutral on defense sector following a results season that saw year-on-year growth outcomes with a +7% average and an average for the primes of +3%. Given that the sector is generally seeing the flow through of previously appropriated DoD budgets, mid-single digit growth is a fair outcome. Supply chain issues have generally eased, and outlays have picked up. The broker suggests "sticking with the winners" for the rest of the year, those stocks that have already performed well this year. "While there may not be a ton of near term upside, we think that industry and company fundamentals are likely to remain supportive of quality names." BAE Systems is their top pick. (alistair.macdonald@wsj.com)
(END) Dow Jones Newswires
November 11, 2024 08:49 ET (13:49 GMT)
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