BUZZ — Avio jumps on Lockheed Martin deal to expand solid rocket motor production

* Shares in Italy's Avio are up around 5% after the rocket maker signed a strategic cooperating agreement with Lockheed Martin to expand solid rocket motor (SRM) production in the United States on Tuesday * Kepler Cheuvreux says qualification phase for SRM is expected to start in Italy, followed by production at the new $500 million Avio plant in Virginia, US * The broker sees the deal absorbing up to 50% of the new US plant capacity * "This agreement is a milestone towards Avio's 2035 plan target, to which we are aligned," says Kepler, confirming 'hold' rating and TP of €30.5 ($34.2) * The deal "considerably increases the visibility of the new business in the U.S.," says Equita brokerage * Out of 6 analysts that cover Avio, 4 rate the stock "buy" and ​2 rate it "hold" ($1 = 0.8929 euros) (Reporting by Fabrizio La Rocca) ((Fabrizio.larocca@thomsonreuters.com)