Lockheed Martin upgraded by Stifel on optimism that Trump will rebuild military

A Lockheed Martin F-35
Simon Dawson | Bloomberg | Getty Images

Investors should buy Lockheed Martin on the prospect of more defense spending from a Donald Trump presidency and Republican-dominated government, according to Stifel, which upgraded the defense contractor to buy from hold.

"LMT [is a] winner from Trump victory. ... While details from President-elect Trump regarding his defense spending plans are somewhat scarce, we see the net effect as positive for Lockheed as we would expect incremental dollars to be directed at some of the DoD's higher priority programs, including F-35," analyst Joseph DeNardi wrote in a note to clients Sunday.