Aerospace To Benefit From Global Recovery (LMT, RTN, ATK)

Analyst Howard Rubel of Jefferies & Company has announced that aerospace stocks stand to benefit from positive global trends for traffic and yields. The Department of Defense has announced the cancellation of the NLOS system since it has not met expectations. The short term impact of this decision on the two major partners, Lockheed Martin

and Raytheon

, is minimal. Also, the recommended reduction in Excalibur and APMI rounds will not have any impact on manufacturers, Raytheon and Alliant

, as these form a small proportion of the overall business. Jefferies has kept EPS estimates unchanged within a $5 to $9 range for Lockheed, Raytheon, and Alliant for both 2010 and 2011.