Key insights
- Bernstein raised its price target on Lockheed Martin (LMT) to $661, citing growth in the Missiles & Fire Control division and margin improvement. New defense contracts and a history of dividend increases support a positive outlook. However, slower growth in the F-35 and Sikorsky divisions may moderate overall upside. The report suggests LMT is undervalued.
Investing.com - Bernstein SocGen Group raised its price target on Lockheed Martin stock (NYSE:LMT) to $661 from $654 while maintaining a Market Perform rating. The aerospace giant, with a market capitalization of $131.81 billion, currently trades at $571.95, which InvestingPro analysis suggests is undervalued relative to its Fair Value—positioning it among opportunities on the Most Undervalued stocks list.
The firm cited the Missiles & Fire Control division as the expected growth leader, supported by a new framework for key missile programs reinforced by the President’s budget.
The analyst noted potential margin improvement as the division’s classified programs move through unfavorable fixed-price blocks—a key focus given the company’s current gross profit margin of 10.24%. The Space division is expected to drive additional growth as new-generation space program revenues offset declines in legacy programs. According to InvestingPro Tips, Lockheed has raised its dividend for 23 consecutive years, offering investors a 2.41% yield alongside growth prospects. For deeper insights, investors can access the comprehensive Pro Research Report, available for LMT and 1,400+ other US equities.
Slower growth in the F-35 and Sikorsky divisions will likely moderate overall upside, according to the firm.
The price target increase reflects a higher top-line outlook for the Missiles & Fire Control business.
In other recent news, Lockheed Martin has secured a series of significant defense contracts, highlighting its continued prominence in the defense sector. The company announced a $1.9 billion contract from the Pentagon for the C-130J Maintenance and Aircrew Training System program, which will provide aircrew and maintenance training devices and support services over the next decade. Additionally, Lockheed Martin received two contracts totaling approximately $868 million for missile and fighter programs, including an $850.4 million contract for the TRIDENT II (D5) Life Extension 2 SSP Alteration Advanced Design and Development Program.
Further bolstering its portfolio, the company secured four defense contracts worth approximately $137.6 million, with the largest being a $70.1 million modification for Romania’s F-35 Foreign Military Sales program. The U.S. Navy also awarded Lockheed Martin a $200 million contract to integrate Patriot missiles into its weapon systems on warships.
Beyond contracts, Lockheed Martin announced a substantial increase in its venture capital fund from $400 million to $1 billion, aiming to mature technologies for national security. These developments underscore Lockheed Martin’s strategic focus on expanding its capabilities and maintaining its leadership in defense technology.
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