67. WALL STREET ANALYSTS, BANKERS & INVESTORS (76x) Normally, when defense spending drops, so does the stock value of military contractors. But defense stock values have defied financial gravity as firms have continued aggressive efforts to shed personnel and facilities and cut internal costs, including R&D spending to underwrite share buyback programs and generous dividends to retain investor interest. It’s worked, but analysts debate how much longer companies can continue the same tactics. Although bankers are laying the groundwork for future deals, until there’s greater budgetary certainty, the expected wave of mergers and acquisitions that will accompany US and European spending cuts will remain stalled. Joe Nadol of JPMorgan Chase, Doug Harned of Sanford Bernstein and Ron Epstein of Bank of America are the top sell-side analysts, according to Institutional Investor, and Wall Street veteran Byron Callan at Capital Alpha Partners remains the leading independent financial analyst covering the sector. Bankers to watch in this cycle include the venerable duo of Denis Bovin and Mike Urfirer of Stone Key Partners, Credit Suisse veteran Craig Oxman, mid-cap expert Anita Antenucci of Houlihan Lokey, Evercore’s Les Fabuss and Citigroup’s Kevin Cox. Investors who other investors watch include Steve Binder of Adage Capital Management, Steve Roorda of Ameriprise, Jason Toner of Capital Group, Matt Simon of Citadel Investment Group, Douglas Scott of Fidelity, Claude Staehly of Wellington Management and Frank Finelli at The Carlyle Group. James McAleese of McAleese & Associates is a bridge between Washington and Wall Street. The complete report follows… .