Deutsche Banks' Aerospace & Defense Preview (GR, TGI, TXT, BA)

Deutsche Bank is out with a research note this morning, where it takes a look at recent trends in the Aerospace & Defense space and what they mean for stocks in its coverage space. The analysts noted that A&D companies would begin reporting 4Q results on January 20. Much like the past few quarters, they believe 4Q will tell two very different stories, with commercially-exposed companies posting stronger results and talking up improving end markets and accelerating earnings growth, and defense companies posting mediocre top-line growth and offering their perspective on budget cuts (though outlooks that are likely largely in-line with consensus). DB's top picks in the Commercial sector are Goodrich GR, Triumph Group TGI, Textron TXT, and Boeing BA, while General Dynamics GD takes the top spot in the Defense space.