Gautam Khanna, an analyst from TD Cowen, maintained the Buy rating on Lockheed Martin (LMT – Research Report). The associated price target was lowered to $500.00.
Gautam Khanna has given his Buy rating due to a combination of factors that highlight Lockheed Martin’s resilience and potential for future growth. Despite the loss of the NGAD contract to Boeing, Lockheed Martin plans to integrate its 6th generation fighter technology into the F-35 program, which could enhance the capabilities and competitiveness of the F-35. This strategic move is expected to mitigate the impact of the NGAD loss on the company’s sales and profits, as the financial impact is relatively small and offset by other positive factors.
Furthermore, Lockheed Martin’s F-35 program remains robust, with expectations of strong foreign demand compensating for any potential decline in U.S. orders. The company anticipates maintaining a steady production rate and recovering significant cash withholds over the next few years. Additionally, favorable contract closeouts and the ability to recover tariffs further support the company’s financial stability. These elements collectively contribute to Khanna’s positive outlook and Buy rating for Lockheed Martin’s stock.
In another report released on April 16, Morgan Stanley also upgraded the stock to a Buy with a $575.00 price target.
Based on the recent corporate insider activity of 20 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of LMT in relation to earlier this year.