U.S. Navy Taps Lockheed Martin And IFS For Digital Transformation

Lockheed Martin (LMT) and IFS have been selected to deliver an intelligent maintenance solution to the U.S. Navy. Global security and aerospace company Lockheed Martin will partner with enterprise application company IFS to digitize and modernize the navy’s logistic information system.

Integration of the intelligent maintenance solution is part of a modernization drive that enhances mission-critical maintenance, planning, and execution. It should also reduce the amount of time that personnel spends on maintenance and repair works. This solution will be integrated into more than 3,000 of the navy’s assets, including ships, aircraft, and land-based equipment.

The digital transformation will enable asset consolidation and data in a central repository. Data accuracy, streamlined workflows, and less downtime are some of the other benefits this solution will deliver. (See Lockheed Martin stock analysis on TipRanks)

“We want to empower Navy personnel with tools that are easy and effective to use with intuitive interfaces, streamlined workflows and timesaving, intelligent features. IFS distinguished itself by providing all of these capabilities through a single, commercial-off-the-shelf solution,” said Vice President of Lockheed Martin’s Enterprise Sustainment Solutions Reeves Valentine.

Lockheed Martin and IFS were selected following a competitive evaluation process.

According to Cowen analyst Cai Von Rumohr, Lockheed Martin is well-positioned to generate shareholder value, given its high 6.8% cash flow yield.

“In-line Q1 and nudged 2021-22 prospects support LMT as the sector’s “steady eddie” GARP & dividend growth story; and the RESCUE Act pension plus gives it a peer-hi 6.8% cash flow yield. This provides support for LMT’s 2.7% dividend yield with firepower for additional repo and/or M&A,” Von Rumohr wrote in a research note to investors.

The analyst has since reiterated a Buy rating on the stock with a $410 price target implying 7.72% upside potential to current levels.

Consensus among analysts is a Moderate Buy based on 5 Buy and 6 Hold ratings. The average analyst price target of $414.40 implies 8.87% upside potential to current levels.

LMT scores an 8 out of 10 in TipRanks’ Smart Score rating system, implying it is likely to outperform the overall market.

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