Lockheed Martin initiated with a Hold at Deutsche Bank

Deutsche Bank analyst Scott Deuschle initiated coverage of Lockheed Martin with a Hold rating and $435 price target. The analyst believes the company’s latest acceleration in order momentum should support a growth reacceleration in the years ahead, creating “solid upside potential” to Street revenue forecasts. However, recent commentary on inflation-driven margin pressure is a concern, particularly with Lockheed increasingly trading on margin performance rather than revenue, the analyst tells investors in a research note. The firm says the F-35 delivery halt is another worry, as it may pressure 2023 free cash flow and create additional headwinds to 2024 margins.