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Vertical Research Partners lowers Lockheed Martin stock price target on 2Q charges

Published 22/07/2025, 19:04
Vertical Research Partners lowers Lockheed Martin stock price target on 2Q charges
LMT
0.15%

Investing.com - Vertical Research Partners has lowered its price target on Lockheed Martin (NYSE:LMT) to $460.00 from $505.00 while maintaining a Hold rating following the defense contractor’s second-quarter results. The stock, currently trading at $421.81 and near its 52-week low, appears undervalued according to InvestingPro analysis.

The research firm cited ongoing challenges for Lockheed Martin, including recent losses such as the Next (LON:NXT) Generation Air Dominance (NGAD) competition and the departure of its Chief Financial Officer to Boeing (NYSE:BA).

Vertical Research specifically pointed to charges in the second quarter as "another reminder of the risks involved in fixed price development contracts in defense" and expressed concern about the possibility of additional charges in the future.

The firm noted that Lockheed Martin’s cash flow is now projected to decline in 2026, creating a growth outlook that lags behind some of its industry peers.

Vertical Research Partners reiterated its Hold rating on Lockheed Martin stock despite the reduced price target, reflecting a cautious stance on the company’s near-term prospects.

In other recent news, Lockheed Martin Corporation announced its financial results for the second quarter of 2025, revealing a significant shortfall in earnings per share (EPS). The company reported an EPS of $1.46, which was substantially below the anticipated $6.54, marking a surprising miss of 77.68%. Revenue also failed to meet expectations, coming in at $18.2 billion compared to the forecasted $18.58 billion. These results are part of the latest developments concerning Lockheed Martin. The earnings miss led to a notable decline in the company’s stock price. Analysts had projected higher earnings, which contributed to the unexpected nature of the results. No updates on analyst ratings or other company news were mentioned in the recent disclosures.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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