Why Lockheed Martin Stock Keeps Going Up
Three Wall Street analysts published positive reports on Lockheed Martin stock today.
Lockheed Martin's (LMT) stock has been on a steady rise, with shares climbing another 3.3% as of 12:35 p.m. ET on Monday. This surge follows three separate Wall Street analysts endorsing the company's growth potential. Morgan Stanley analyst Kristine Liwag highlighted Lockheed's 10-year production contract with the Air Force to manufacture 156 F-35 fighter jets annually.
Liwag also anticipates a boost in missile production revenue in the mid-teens over the next five years. This, in turn, would drive Lockheed's stock price to $835 per share within the next year, earning it an "upgrade to overweight" rating from the analyst. In contrast, Bank of America and JP Morgan maintained a neutral rating on the defense giant but raised their price targets, estimating $620 and $665 per share, respectively.
Bank of America's Ronald Epstein expressed the most cautious outlook, acknowledging the F-35 franchise as a key revenue contributor but questioning the potential impact on profit margins due to increased production rates. Despite this concern, Lockheed's stock remains an attractive investment option, boasting a price-to-free cash flow ratio of under 17x, a long-term earnings growth rate near 18%, and a dividend yield of 2.4%.
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Also reported by 1 other outlet
- Why Lockheed Martin Stock Keeps Going Up nasdaq.com
