Lockheed Martin upgraded to Overweight from Neutral at JPMorgan

JPMorgan upgraded Lockheed Martin to Overweight from Neutral with a price target of $518, up from $475. The defense industry got the fiscal 204 budget it needed last month, which had been a concern, and JPMorgan expects some supplemental funding for Ukraine, Israel and Taiwan, the analyst tells investors in a research note. The firm says any change in market momentum would likely leave defense stocks, for which Lockheed is the bellwether, well positioned placed in relative terms. It believes the company’s inability to deliver F-35s has been an overhang, as have pending charges on a classified missile program. There is still risk around these overhangs but also potential for them to ease, contends JPMorgan.