Lockheed Martin price target raised to $480 from $460 at Barclays

Barclays raised the firm’s price target on Lockheed Martin to $480 from $460 and keeps an Equal Weight rating on the shares. While aerospace has worked and shares are expensive on average, there is further outperformance on upside to forward expectations that can more than offset likely modest valuation compression, the analyst tells investors in a research note Friday morning. The firm says that while defense has underperformed, the sector is relatively cheap and a presidential election year “typically sets up well.” Even so, defense unlikely to work without positive forward revisions that require budget growth rather than a cut under a sequester, contends Barclays. It prefers defense to government services as it thinks the latter will under grow defense with margins at peak.