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Will the Delay in NASA’s Artemis I Launch Impact BA & LMT Stocks?
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Will the Delay in NASA’s Artemis I Launch Impact BA & LMT Stocks?

Story Highlights

NASA’s Artemis program of sending humans back to the moon’s surface is highly dependent on the success of the Artemis I Mission. Despite the delay in the launch on Monday, this mission could provide a boost to Boeing’s and Lockheed Martin’s space programs in the future.

The National Aeronautics and Space Administration’s (NASA) plans to launch its moon rocket, Space Launch System (SLS), on Monday have been postponed due to some technical glitches with one of the four engines. Despite this hurdle, we believe that the prospects of the two American aerospace behemoths, The Boeing Company (NYSE:BA) and Lockheed Martin Corporation (NYSE:LMT), tied to NASA’s project will stay intact.

NASA noted that one of the four engines, installed in the main part of the SLS rocket, showed problems related to pressure and temperature. A NASA official, Mike Sarafin, said, “The vent valve wasn’t cooperating with us.”

It is worth mentioning that NASA intends to fire its 98-meter tall SLS rocket into space, which will help to launch an uncrewed Orion spacecraft toward the moon. This program is popularly known as NASA’s Artemis I mission. The SLS rocket is equipped with technologies provided by Boeing and Lockheed Martin.

In light of this event, the contributions made by Boeing and Lockheed Martin in this project are briefly discussed below. Also, a consolidated chart designed using TipRanks’ Stock Comparison tool and Wall Street’s take on the two tech companies is provided below.

The Boeing Company (NYSE:BA)

The $98.2-billion company has expertise in making human space flights, satellites, rockets, missiles, launch systems, commercial airplanes, and military-grade aircraft. For NASA’s Artemis I mission, Boeing has provided the core and upper stages and avionics for the SLS moon rocket.

Also, Boeing is the biggest contractor for the SLS rocket and has played a critical role in assembling rocket parts at Kennedy Space Center in Florida.

The company said, “We’re providing both the brains and muscle to make the next generation of human spaceflight possible.”

It is evident from the above discussion that the success of the Artemis I mission is very critical for Boeing, as it would boost the company’s space business. Notably, Boeing’s space ventures with NASA are under the Defense, Space & Security segment.

Is BA Stock a Good Buy?

Wall Street is highly optimistic about the prospects of Boeing. Analysts’ opinion on TipRanks suggests that Boeing stock could be a good buy.

BA stock has a Strong Buy consensus rating based on 11 Buys and two Holds. Also, BA’s average price forecast of $213.33 represents a 28.96% upside potential from the current level. Shares of Boeing have decreased 24% in the past year.

Lockheed Martin Corporation (NYSE:LMT)

The security and aerospace company has expertise in providing technology systems and products and related services to domestic and international government and commercial clients. The $113.9-billion company has built the Orion spacecraft that will be launched toward the moon by the SLS rocket.

This astronaut capsule will be unmanned and have the capabilities of detaching itself from the launch rocket. For now, the capsule has been programmed to orbit the moon and return to the earth after 42 days.

Lockheed Martin is counting on the success of the Artemis I mission, as it will open gates to NASA’s bigger venture of sending the human race back to the lunar surface in a couple of years. The results of Lockheed Martin’s business with NASA fall under its Space segment.

Is Lockheed Martin a Buy or Sell?

Wall Street appears to be both cautious and optimistic about the prospects of LMT stock. Therefore, a wait-and-watch approach could be the best idea for prospective investors.

On TipRanks, analysts have assigned nine Hold ratings on LMT stock versus three Buys. The stock’s consensus rating is a Hold. Also, LMT’s price target is $472.33, which represents 9.93% upside potential from the current level. Over the past year, shares of LMT have grown 18.7%.

Concluding Remarks

The success of the Artemis I program would be a win-win situation for NASA as well as Boeing and Lockheed Martin.

For NASA, this success would mean that the federal agency could proceed with its Artemis II program, to be launched in 2024, and the Artemis III program scheduled for 2025. While the second program is to test the success of the SLS rocket and Orion spacecraft with a four-member crew, the third program aims at sending a crew of four people to the lunar surface.

As of now, it is evident that a successful phase I of the Artemis program could be a game-changer for Boeing’s and Lockheed Martin’s prospects in space programs.

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