Lockheed Martin price target lowered to $480 from $495 at BofA Securities

Investing.com - BofA Securities lowered its price target on Lockheed Martin (NYSE:LMT) to $480 from $495 while maintaining a Neutral rating on the defense contractor’s stock. The aerospace giant, currently trading at $446 with a market capitalization of $104.34B, has seen its stock decline 6.9% year-to-date. According to InvestingPro analysis, the stock appears slightly undervalued based on its Fair Value assessment.

The adjustment follows Lockheed Martin’s report of $1.8 billion in charges during the second quarter, primarily related to a classified Aeronautics program and two programs in the company’s Rotary and Mission Systems division.

BofA Securities noted these charges come after approximately $2 billion in charges on legacy programs earlier in 2024, creating a pattern of financial adjustments that has concerned investors.

The research firm acknowledged Lockheed Martin’s strong portfolio, particularly highlighting its missile capabilities, but suggested the company will face investor skepticism in the near term.

BofA Securities cited limited near-term catalysts and ongoing challenges with troubled programs as key factors in its decision to maintain a Neutral stance while reducing the price target.

In other recent news, Lockheed Martin has secured multiple defense contracts, significantly enhancing its portfolio. The company was awarded over $4.2 billion for the production of the Guided Multiple Launch Rocket System, with the contract modification bringing the total value to over $13 billion. Additionally, Lockheed Martin received a $720 million contract modification for HELLFIRE/JAGM missiles, increasing the total contract value to nearly $1.5 billion. The U.S. Department of Defense also awarded Lockheed Martin a $110.9 million contract for Trident (NSE:TRIE) II missile production and support.

Furthermore, Poland has finalized a $3.8 billion deal with the U.S. to upgrade its fleet of 48 F-16 fighter jets, with Lockheed Martin serving as the primary contractor. This modernization aims to enhance Poland’s defense capabilities and interoperability with NATO forces. These developments underscore Lockheed Martin’s expanding role in global defense initiatives.

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