On September 15, Guggenheim ****** yst Michael Ciarmoli initiated coverage of almost two dozen defense stocks, with a bullish, sector-wide buy-the-pullback call.
He issued 13 Buy ratings with an average upside of roughly 50%, with the standout being Applied Aerospace & Defense, Inc. (NYSE:AADX). The ****** yst sees the stock around $30, up by about 150% from the share's closing price that day.
Ciarmoli described AADX as a "merchant supplier of established and proven military subsystems and components". The ****** yst believes the company is well positioned to benefit from favorable growth trends across the aerospace, defense, and ****** e industries.
Several defense stocks have struggled since the advent of the Iran war. Investors are also concerned about the possibility of a split Congress after the midterm elections, which could result in a spending gridlock.
However, Ciarmoli says the fears are overblown. The Guggenheim ****** yst is urging investors to be buyers on the pullback. He expects the current trend of increased spending on autonomous systems, ****** e, and replenishing depleted stockpiles to sustain.
#pullback
He issued 13 Buy ratings with an average upside of roughly 50%, with the standout being Applied Aerospace & Defense, Inc. (NYSE:AADX). The ****** yst sees the stock around $30, up by about 150% from the share's closing price that day.
Ciarmoli described AADX as a "merchant supplier of established and proven military subsystems and components". The ****** yst believes the company is well positioned to benefit from favorable growth trends across the aerospace, defense, and ****** e industries.
Several defense stocks have struggled since the advent of the Iran war. Investors are also concerned about the possibility of a split Congress after the midterm elections, which could result in a spending gridlock.
However, Ciarmoli says the fears are overblown. The Guggenheim ****** yst is urging investors to be buyers on the pullback. He expects the current trend of increased spending on autonomous systems, ****** e, and replenishing depleted stockpiles to sustain.
#pullback
2 months ago
