Lockheed Martin downgraded to Sell from Neutral at Goldman Sachs

Goldman Sachs analyst Noah Poponak downgraded Lockheed Martin to Sell from Neutral with a price target of $332, down from $388. The U.S. defense budget has grown significantly to an all-time high level, and with a large level of cumulative government debt, focus on slowing spending growth or reducing it outright could return in 2023, Poponak tells investors in a research note. The analyst says Lockheed often grows at similar rates as the budget while it also has a number of program specific headwinds in the near-to-medium term, including F-35, Blackhawk, OPIR, and tough compares in missile and missile defense. This creates an "idiosyncratic growth headwind" on top of the overall budget pressures that could materialize, contends Poponak.