Wall Street is under-appreciating the growth outlook for the defense sector, according to Citi.
Nonetheless, Citi remains confident in "the bull case for defense."
Defense companies historically trade at a premium to the rest of the market when defense budgets grow, Gursky said.
Here are some of Citi's favorite defense picks, all of which have a buy rating from the bank.
Citi's $525 price target implies almost 12% upside from Friday's close.
Persons:
Jason Gursky, Gursky, Leidos, Lockheed Martin
Organizations:
Citi, P Aerospace, Defense, Citigroup, Leidos Holdings, Lockheed, SAIC, International Corps
Locations:
Friday's