Lockheed Martin’s (NYSE:LMT) unit, Sikorsky, has challenged the U.S. Army’s decision to award the Future Long-Range Assault Aircraft (FLRAA) contract to Textron (TXT). In this regard, Lockheed filed a protest with the U.S. Government Accountability Office (GAO), seeking a review of the decision.
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The FLRAA program, expected to be worth about $70 billion, involves replacing the U.S. Army’s UH-60 Black Hawk and Apache helicopters by 2030. Earlier in December, Textron bagged the contract to build its V-280 Valor tiltrotor, in order to replace the Black Hawk helicopter.
Lockheed Martin is of the opinion that its own aircraft, the DEFIANT X, built in partnership with Boeing (BA), is a better fit for the Army’s requirements.
The company stated that the “data and discussions lead us to believe the proposals were not consistently evaluated to deliver the best value in the interest of the Army, our Soldiers, and American taxpayers.”
Lockheed Martin is a global security and aerospace company that designs and develops advanced technology systems, products, and services. The majority of the company’s business is with the U.S. Department of Defense and U.S. federal government agencies.
Is LMT a Buy, Hold, or Sell Stock?
Lockheed Martin has a Hold consensus rating based on four Buys, nine Holds, and two Sells. The average LMT stock price target of $490.50 implies 1.5% upside potential from the current level.
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