J.P. Morgan analyst Seth Seifman has maintained their neutral stance on LMT stock, giving a Hold rating on January 30.
Geoff Meacham has given his Hold rating due to a combination of factors involving the fiscal environment and production dynamics for Lockheed Martin. The Department of Defense (DoD) is facing a constrained budget, with growth capped at 1% year-over-year by the Fiscal Responsibility Act (FRA). This limitation is particularly challenging in an inflationary environment, which restricts the DoD’s ability to fund various operations and development projects. Amid these budget constraints, reports suggest a potential decrease in the F-35 fighter jet order, which is a significant portion of Lockheed Martin’s sales, thereby raising concerns about the company’s future revenue streams.
Additionally, the production of F-35s is continuing despite delivery slowdowns caused by pending upgrades and software testing, which may impact Lockheed Martin’s production rate if delays persist. While Congress has historically increased budget caps and could potentially add more F-35s to the request, the uncertainty surrounding the FY25 budget approval and the broader fiscal policy environment contribute to the Hold rating. The combination of these factors—budget caps, potential order reductions, and production versus delivery dynamics—presents a complex scenario for Lockheed Martin, leading to a cautious outlook reflected in the Hold rating.
In another report released on January 30, Barclays also maintained a Hold rating on the stock with a $480.00 price target.
LMT’s price has also changed slightly for the past six months – from $450.080 to $418.190, which is a -7.09% drop .
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Lockheed Martin (LMT) Company Description:
Headquartered in Bethesda, Maryland, Lockheed Martin Corp. is a global security and aerospace company and is engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. The majority of Lockheed Martin’s business is with the U.S. Department of Defense and U.S. federal government agencies. Lockheed Martin’s business is also comprised of international government and commercial sales of products, services and platforms. The company’s operating units are divided into four categories including, Aeronautics, Missiles and Fire Control, Rotary and Mission Systems and Space Systems.
Read More on LMT:
- Dutch court orders halt of delivery of F-35 parts to Israel, Al-Jazeera says
- Lockheed Martin awarded $193.79M Navy contract modification
- Lockheed Martin awarded $150.56M Navy contract modification
- Defense contractors passing on some big deals, WSJ reports
- Lockheed Martin Issues $2 Billion in Senior Notes
