Hold Rating on Lockheed Martin Amid Balanced Performance and Market Expectations

Lockheed Martin (LMT – Research Report), the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Matthew Akers from Wells Fargo maintained a Hold rating on the stock and has a $460.00 price target.

Matthew Akers has given his Hold rating due to a combination of factors including Lockheed Martin’s financial performance and future outlook. The first quarter results for Lockheed Martin were slightly ahead of expectations, with earnings per share (EPS) surpassing both Wells Fargo’s model and consensus estimates, thanks to a 14% sales increase that partially benefited from an extra week in the quarter. However, the segment margin fell short by 30 basis points compared to the model. Despite higher sales growth, free cash flow (FCF) was below the projected figure, and the company repurchased $1 billion in shares during the quarter.
Additionally, Lockheed Martin reaffirmed its full-year 2024 guidance, with sales and segment profit projections aligning with Wells Fargo’s estimates and implying a steady margin. The EPS guidance remains unchanged and falls within the range of Wells Fargo’s and consensus estimates. With the total backlog remaining robust and the company planning to continue its share repurchase program, the Hold rating suggests a balance between Lockheed Martin’s solid backlog and operational performance against the expectations already reflected in the market.

In another report released on April 19, RBC Capital also maintained a Hold rating on the stock with a $470.00 price target.

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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.