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Investing.com - Truist Securities downgraded Lockheed Martin (NYSE:LMT) from Buy to Hold and slashed its price target to $440.00 from $554.00 following the defense contractor’s second-quarter 2025 results. The stock, currently trading near its 52-week low of $410.11, appears undervalued according to InvestingPro analysis.
The downgrade comes after Lockheed Martin reported significant charges totaling $1.8 billion in the quarter, which Truist Securities described as "far larger and broader in scope" than anticipated.
Truist Securities indicated the substantial charges may represent a "kitchen sink" quarter following a recent change in Lockheed’s chief financial officer position, but warned that additional charges across existing programs could materialize in upcoming periods.
The financial firm noted that strengthened and expanded oversight and controls at Lockheed Martin might lead to further financial adjustments in the future.
According to Truist Securities, these charges will likely negatively impact future free cash flow and potentially future margins, making it more difficult for Lockheed Martin to achieve the upper end of its multi-year growth framework.
In other recent news, Lockheed Martin Corporation reported its financial results for the second quarter of 2025, revealing a significant earnings per share (EPS) miss. The company posted an EPS of $1.46, which was considerably lower than the forecasted $6.54, resulting in a surprise miss of 77.68%. Revenue also fell short of expectations, coming in at $18.2 billion compared to the anticipated $18.58 billion. In addition to these financial results, Vertical Research Partners has lowered its price target for Lockheed Martin to $460.00 from $505.00, while maintaining a Hold rating. The firm cited ongoing challenges for the company, including recent losses such as the Next (LON:NXT) Generation Air Dominance competition. Furthermore, the departure of Lockheed Martin’s Chief Financial Officer to Boeing (NYSE:BA) was noted as a concern. These developments have raised questions about the company’s future performance and strategic direction.
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