Lockheed Martin downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley analyst Kristine Liwag downgraded Lockheed Martin to Equal Weight from Overweight with a price target of $542, up from $506. The market has yet to fully price in the extent of geopolitical realities and stronger focus on strategic competition, which supports a positive view on U.S. defense stocks heading into 2023, Liwag tells investors in a research note. The analyst believes 2023 should continue to be driven by geopolitical perceptions, with the most significant growth from higher defense spending commitments not materializing until the 2024-2025 timeframe. However, Lockheed’s strong share performance this year limits further upside, Liwag contends.