Key insights
- Bernstein cut Lockheed Martin's price target due to a weak defense environment and a recent earnings miss. Despite some divisional strengths and new contracts, the analyst downgrade and stock performance suggest potential headwinds for the defense sector, which could indirectly impact broader market sentiment if it signals a slowdown in government spending or increased geopolitical risk aversion.
Investing.com - Bernstein SocGen Group lowered its price target on Lockheed Martin Corp. stock to $614 from $661 while maintaining a Market Perform rating on Monday.
Lockheed Martin (NYSE:LMT) shares have fallen 22% since the February 27 U.S. attack on Iran. Ten percentage points of the decline came after the company reported first-quarter earnings. The stock currently trades at $516.30, roughly 25% below its 52-week high of $692, according to InvestingPro data.
The defense contractor reported first-quarter earnings per share of $6.44, below the consensus estimate of $6.88, with sales and margins both missing expectations. Book-to-bill was 60%, though the trailing 12-month figure stands at 119%. The company left its guidance unchanged. For deeper analysis of Lockheed’s financial health and future prospects, investors can access the comprehensive Pro Research Report available on InvestingPro.
Strength at Lockheed Martin came from its Missiles and Fire Control division, which provided additional detail on new frameworks for key missile programs including PAC-3 and THAAD. The division expects a mid-teens sales compound annual growth rate through 2030.
The contracts include inflation-based escalators and provisions to compensate Lockheed Martin for its investments. The Space division is expected to drive growth as new-generation space program revenues offset declines in legacy programs.
In other recent news, Lockheed Martin reported first-quarter 2026 earnings with diluted earnings per share of $6.44, which fell short of RBC Capital’s estimate of $6.59 and consensus expectations of $6.74. The company’s total revenues for the quarter remained flat at $18.0 billion, a result partly attributed to one less working week. The U.S. Space Force awarded Lockheed Martin, among others, contracts worth up to $3.2 billion to develop space-based missile defense interceptor systems under the Golden Dome plan. Additionally, Lockheed Martin announced that Peru has ordered 12 F-16 Block 70 fighter jets to modernize its fleet, with production to occur in Greenville, South Carolina. In a demonstration of technological advancements, Lockheed Martin showcased its NGC2 prototype during the Balikatan 2026 exercise, integrating various military systems for improved operational efficiency across the Indo-Pacific. Lockheed Martin’s board of directors also declared a second-quarter 2026 dividend of $3.45 per share, payable in June. Meanwhile, RBC Capital has adjusted its price target for Lockheed Martin stock to $575 from $650, maintaining a Sector Perform rating.
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