RBC's Defense Sector Changes

RBC Capital Markets changed ratings on three stocks in the defense sector.

• Lockheed Martin LMT and Northrop Grumman Corporation NOC both dowgraded from Outperform to Sector Perform, based on valuation.
• Upgraded L-3 Communications LLL from Sector Perform to Outperform and raised price target to $150 from $137, based on improved confidence L-3 will meet or beat 2016 guidance.

Two hours into Thursday's trading, Lockheed shares were down more than 1 percent at $238.10, Northrop shares were down almost 2 percent at $210.27, while L-3 was up 0.3 percent at $136.85.