Aerospace giants Lockheed Martin (NYSE:LMT), Boeing (NYSE:BA), and Elon Musk’s spacecraft manufacturing company SpaceX are once again working on future NASA (National Aeronautics and Space Administration) projects under the Artemis moon program. The companies are behind NASA’s lunar rocket, which is due to be launched in November after two failed attempts due to technical glitches. Investors could see BA stock and LMT stock rise as a result.
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Notably, NASA has been focusing on sending astronauts to the moon for the first time since 1972, using Space Launch System (SLS) rockets as part of its Artemis program. These vehicles have been developed by a group of aerospace companies, manufacturers, and suppliers, which include Lockheed, Boeing, and SpaceX. And now, the companies have been roped in again on various projects under the Artemis program.
Boeing’s Role in NASA’s Project Artemis
Boeing is currently developing SLS hardware for the Artemis missions. In the meantime, a procurement document from NASA revealed that Boeing and Northrop Grumman (NYSE:NOC) are jointly working on building at least five SLS rockets that may be used by the agency for future launches. The partnering companies’ strong know-how of SLS rockets led NASA to propose the contract award to their joint venture.
Is BA a Buy or Sell?
On Wall Street, Boeing stock has a Moderate Buy consensus rating, based on 12 Buys, two Holds, and one Sell. The average price target for BA stock is $203.31, indicating an upside of 43.13% from current price levels. Boeing will report earnings tomorrow, October 26th; the stock has fallen 31.7% year-to-date.
Lockheed’s Orion to Take on a Key Role
Moreover, Lockheed will be developing three more of its Orion spaceships, which will be blasted into the moon’s orbit by NASA in the sixth, seventh, and eighth Artemis missions. The order amount is said to be about $2 billion. Lockheed is currently developing four Orion spacecraft for the second through fifth Artemis flights.
What is the Target Price for LMT?
The average price target on the LMT stock is $460, which indicates a 1% upside over the next 12 months. Moreover, Wall Street analyst consensus has a Hold rating on Lockheed stock, based on three Buys, seven Holds, and two Sells. Lockheed Martin showed an earnings beat when it reported Q3 last week; LMT stock has risen 31.7% year-to-date.
SpaceX Makes Key Developments
Apart from these, a SpaceX executive revealed on Monday that the company has been conducting ground tests before the first orbital test flight of its Starship launch vehicle. Notably, NASA has requested a version of the vehicle for the third Artemis mission slated for 2025. The vehicle will be used to take two astronauts to the surface of the moon after onboarding them from Orion.
Bottom-Line: Long-Term Gain for LMT, BA, and SpaceX
The developments come as major news for the companies involved, as the projects that they are working on are historical ones. Being a part of the Artemis program provides a meaningful upside to the LMT and BA stocks, along with better experience and visibility for SpaceX.
