>>> US Aerospace & Defense electronics: Deutsche Bank A&D 2Q preview

Aerospace & Defense electronics: Deutsche Bank A&D 2Q preview

Deutsche Bank notes commercial aero stocks are about flat YTD on avg while defense stocks have appreciated 9%. Commercial stocks have taken a pause after last year's strong performance, while defense stocks continue to perform well (though have underperformed the overall market over the past 3 mos). DB thinks the current breather being taken in commercial stocks is healthy, but will turn up post better 2Q earnings season and into the Farnborough Air show.
  • As such, Deutsche Bank likes Boeing (BA), Hexcel (HXL), General Dynamics (GD), and Embraer (ERJ) into the Q.
  • In the note, DB raised target prices:
    • UTX to $130 from $127; Buy
    • GD to $126 from $122; Buy
    • LLL to $131 from $130; Buy
    • BEAV to $95 from $94; Hold

-- > Who is reporting When ? read across for European names that have underperforming lately...
BA : 23/07
HXL : 21/07
GD : 23/07
ERJ : 23/07
UTX : 22/07
LLL : 25/07
BEAV : 23/07

in Europe
SAF FP : 31/07
AIR FP : 30/07
ZC FP : 30/07
RR/ LN : 31/07
HO FP : 24/07