Canada announced that it signed an agreement with the government of the United States and Lockheed Martin (NYSE:LMT) to buy the latter’s F-35 fighter jets for its Royal Canadian Air Force (RCAF).
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Per the deal, Canada will purchase 88 advanced F-35 fighter jets for C$19 billion. This also marks the largest investment by the RCAF in the last three decades.
According to the agreement, the deliveries are expected to start in 2026. Moreover, the full operational capability for the entire fleet may be reached between 2032 and 2034.
Is Lockheed Martin a Buy, Sell, or Hold?
The Russia-Ukraine war has boosted the global defense budget, driving the order books and supporting the financials of the companies operating in the defense space, including LMT. While the new agreement is a positive for LMT, this large-cap stock has a Hold consensus rating on TipRanks.
LMT stock has received four Buy, 10 Hold, and two Sell recommendations. Further, these analysts’ average price target of $490.53 implies a limited upside of 6.87%.
Notably, analysts favor other high-growth names within the defense sector. Cowen analyst Cai von Rumohr is backing Booz Allen (NYSE:BAH) and KBR (NYSE:KBR). BAH carries a Moderate Buy consensus rating on TipRanks. Meanwhile, KBR sports a Strong Buy consensus rating.
As for LMT stock, the analyst maintains a Hold recommendation.
While analysts remain sidelined, hedge funds have lowered their exposure to LMT stock. Nevertheless, with a positive signal from insiders, LMT stock has an Outperform Smart Score of nine.
