Investing.com – Deutsche Bank struck an optimistic tone for the aerospace and defense sector heading into 2025, citing improved Boeing (NYSE: ) production and strong demand from key suppliers.
The bank upgraded RTX to “buy” with a target of $140, reflecting its strong growth in aerospace and international defense exposure. Boeing, also rated a “buy,” emphasized its clean balance sheet and operating momentum after the strike, which could potentially lead to international orders boosted by trade policies.
GE Aerospace was named the aftermarket's top list, supported by double-digit aftermarket growth expectations and an impressive valuation.
Among the suppliers, Carpenter Technology (NYSE: ) and Howmet Aerospace were the top ideas, driven by tight supply-demand dynamics and pricing power in niche markets. CRS has a 49% potential upside to its $250 target, Deutsche Bank (ETR:) he said.
In defense, the article maintained a mixed outlook, admitting to working less than in line with the pressure of the country's situation. However, the expectation of rapid growth in the budget in 2026 and the forecast of the level of the trough led the bank to be cautious.
RTX, Northrop Grumman (NYSE:) were named as preferred defensive stocks, while Lockheed Martin (NYSE: ) was downgraded to “hold.”