Applied Aerospace & Defense Risk-Reward Looks Balanced, Morgan Stanley Says
Applied Aerospace & Defense (AADX) stock offers a balanced risk-reward and a way to navigate the broader defense upcycle, but uncertainty linked with the recently combined company tempers the outlook, Morgan Stanley said in a Monday research note.Applied Aerospace offers diversified exposure across end-markets, and its material science expertise and IP-protected production processes make it a supplier of choice for defense companies, but limited operating history as a combined entity warrants a discount to peers, analysts wrote.The company is well-positioned to benefit from rising global defense spending, according to the note.The brokerage said it initiated coverage of the stock with an equal-weight rating and a price target of $23 per share.Price: $20.18, Change: $-0.35, Percent Change: -1.70%
