Gautam Khanna, an analyst from TD Cowen, maintained the Hold rating on Lockheed Martin. The associated price target remains the same with $520.00.
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Gautam Khanna has given his Hold rating due to a combination of factors influencing Lockheed Martin’s financial outlook. The company’s recent earnings per share exceeded expectations, partly due to non-operating items, and strong bookings were noted without any new charges on classified programs. However, there was limited information on potential portfolio changes, and uncertainty remains regarding the Department of Defense’s budget request, which could impact future F-35 production.
Additionally, while Lockheed Martin saw positive adjustments to its operating income from program charges, there were also notable charges on the C-130J program. The company slightly reduced its free cash flow guidance for the year and plans to use any excess to pre-fund pension contributions. Despite affirming growth expectations for future sales and free cash flow, the decision not to increase capital expenditures or research and development investments as a percentage of sales suggests a cautious approach, supporting the Hold rating.
In another report released on October 20, Bernstein also maintained a Hold rating on the stock with a $545.00 price target.