Lockheed Martin will surge nearly 40% after new Pentagon deal, says Morgan Stanley

Lockheed Martin has entered into a framework agreement with the U.S. Department of Defense for fighter jet production, a move that CNBC reports should support the company's stock. According to Investing.com, the 10-year F-35 agreement maintains production at 156 aircraft per year, which analyst Kristine Liwag states will reduce downside risk and provide supply chain visibility.

Following the agreement, Morgan Stanley upgraded Lockheed Martin from Equalweight to Overweight and increased its price target from $690 to $835. Investing.com notes that the company's Missiles and Fire Control sales grew 24% year-over-year in the third quarter of 2026, and the firm expects mid-teens growth over the next five years as missile production increases.

Brief written by urgent.news from CNBC, Investing.com — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.