Analysts Turn Bullish on Defence and Waste

Aerospace and industrial names dominated analyst activity on Monday. Several rating upgrades and target price increases signal improving sentiment across defence, healthcare and environmental services.

L3Harris Technologies received a target price boost, with consensus lifting to $331.53 from $327.61. The defence electronics group has benefited from strong government spending momentum. Textron also saw its average target rise to $101.40 from $99.47.

The waste sector drew two notable upgrades. UBS raised its target on Waste Management to $280 from $270, maintaining a Buy rating. Republic Services saw consensus targets climb to $253.38 from $243.96. Both names are seen as defensive growth plays in the current environment.

In healthcare, HCA Healthcare consensus targets edged higher to $470.38. AbbVie targets jumped to $290.42 from $283.19, reflecting confidence in its pipeline after recent results. Regeneron Pharmaceuticals drew the largest single target jump of the session. Its average target hit $924, up sharply from $869. The biotech has been recovering ground after a period of pressure on its flagship Dupixent franchise.

One notable downgrade stood out. Xcel Energy was cut in rating terms, with consensus shifting from two holds to one sell. The utility's consensus target moved only marginally to $89.16. Utilities have faced pressure from higher-for-longer rate expectations.

Howmet Aerospace saw its target trimmed to $306.75 from $323.90 despite holding a strong buy-heavy consensus. The aerospace supplier's cut may reflect stretched valuation after a strong run.