NEW YORK ( TheStreet ) -- Raytheon ( RTN ) jumped 3.5% to $95.07 Friday after receiving an upgrade from analyst firm Sterne Agee. The firm upgraded the arms producer to "buy" from "hold," and raised its price target to $114 from $92. Analyst Peter Arment wrote that the upgrade is due to "our view that defense stocks have increased domestic visibility since the budget deal coupled with higher international sales ramping to bridge domestic softness." The upgrade comes one day after Raytheon announced its fourth quarter earnings report. The company posted earnings of $1.46 a share for the quarter. Analysts surveyed by Thomson Reuters estimated $1.35 a share for the quarter. Raytheon missed revenue estimates, however, reporting revenue of $5.87 billion for the quarter. Analysts expected $5.95 billion in revenue. TheStreet Ratings team rates RAYTHEON CO as a Buy with a ratings score of A-.