Lockheed Martin upgraded to Equal Weight from Underweight at Wells Fargo

Wells Fargo upgraded Lockheed Martin to Equal Weight from Underweight with an unchanged price target of $440. Government shutdown fears could provide an attractive entry point near-term for defense stocks, the analyst tells investors in a research note. The firm says Lockheed shares are now below the price target as its thesis has mostly played out. Wells still thinks Lockheed’s cash could be pressured relative to peers on its different Section 174 methodology, but says its 2024 cash will get a modest benefit from higher F-35 deliveries delayed from 2023.