Sterne Agee initiates coverage of the defense sector with a negative outlook, due to the falling...

|By:, SA News Editor

Sterne Agee initiates coverage of the defense sector with a negative outlook, due to the falling U.S. military budgets. However, Stern notes that the U.S. will still provide a market worth around $500B a year, "supporting near-term cash flows, dividend payouts and share buybacks." Sterne rates GD, MRCY and KEYW at buy; LMT, RTN and FLIR at neutral; and AVAV at underperform.