BUZZ-Aero sector poised for growth in 2026, J.P.Morgan says

** The outlook for aerospace and defense companies remains mostly positive into 2026, says J.P.Morgan

** "With multiple years of production in Boeing and Airbus backlogs, traffic growing and an aircraft fleet that is ~2 years older on average than pre-pandemic, the backdrop for commercial aero manufacturers is favorable" - JPM

** Boeing BA.N remains a top pick, brokerage says; "the opportunity is straightforward: the company must build and deliver more aircraft"

** JPM raises Boeing's PT to $245 from $240** Brokerage also says rising global defense spending and slower local capability buildouts are creating strong export opportunities for U.S. defense contractors

** It, however, downgrades stock rating on Lockheed Martin LMT.N to "neutral" from "overweight"

** "The pension cash flow headwind in 2027 should make it difficult to grow cash flow, absent some outsize working capital reduction, and so the consensus for 8% growth looks high to us" - JPM

** S&P 500 Aerospace & Defense .SPLRCAERO index up ~36% YTD

(Reporting by Joel Jose in Bengaluru)

((mailto: joeljose@thomsonreuters.com))