Lockheed Martin Upgrade from Bank of America

In a report published Tuesday, Bank or America analyst Ronald Epstein upgrades Lockheed Martin (NYSE: LMT) from a NEUTRAL to a BUY rating, also raising price target to $170 from $135.The analyst noted, "We expect LMT to trade at a premium to defense pureplay peers due to its higher exposure to the US Air Force particularly with its F-35 exposure as well as higher exposure to long-cycle programs which is 75-80% of its portfolio. In the outyears, we expect rising interest rates to provide pension tailwind and consequently we are raising our estimates."LMT last closed on Monday at $146.28 and opened Tuesday at $149.