Why Lockheed Martin Stock Keeps Going Up
Key PointsMorgan Stanley analyst Kristine Liwag is most optimistic about Lockheed Martin, upgrading the stock to overweight.
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%.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
