Wells Fargo: Defense stock weakness is buying opportunity

|By:, SA News Editor

The decline in defense stocks following tweets by President-elect Donald Trump criticizing the costs of the Air Force One and F-35 was overdone, according to Wells Fargo.

The firm says that interest rates have risen 50 bps since the election, boosting the companies' ability to pay their pensions, while defense budgets look poised to increase in the wake of the election results.

It keeps Outperform ratings on Lockheed Martin (NYSE:LMT), General Dynamics (NYSE:GD), Raytheon (NYSE:RTN), United Technologies (NYSE:UTX) and Orbital ATK (NYSE:OA).

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