Jefferies reiterates Lockheed Martin stock Hold on F-35 costs
Jefferies reiterated a Hold rating on Lockheed Martin (LMT) with a $595 price target, citing its undervaluation and growth potential. The F-35 program, a key revenue driver, saw a $51 billion cost increase due to modernization. LMT recently secured multiple defense contracts, including missile defense and F-35 modifications, highlighting its strategic positioning. The company's revenue over the last twelve months was $77 billion, with a PEG ratio of 0.38.
How this was made
The 30-second read
Why it matters
New defense contracts add to backlog and may support future earnings, though cost escalations in the F‑35 program could temper margin expansion.
Market read
Lockheed Martin's contract wins are a fresh catalyst that could influence its stock price and the broader defense sector.
What to watch
Higher F‑35 acquisition costs could pressure margins despite revenue growth.
Background
Jefferies analyst note reiterating Hold rating on Lockheed Martin with price target and detailing recent contract wins.
Ticker impact
Jefferies reiterates Hold on Lockheed Martin and reports new defense contract awards totaling over $1 billion.
Potential modest upside as investors price in additional backlog.
Contract values are sizable and improve the F‑35 program pipeline, but no immediate earnings guidance change.
Market effects
Strengthens defense sector outlook, especially aerospace and missile systems.
Positive for U.S. defense contractors and related suppliers.
Limited to defense‑heavy markets; modest global impact.
Counterpoint
Contracts may be offset by rising program costs and potential budget constraints.
Key entities
- CompanyLockheed Martin
U.S. aerospace and defense contractor.
- AnalystJefferies
Equity research firm providing rating and price target.
%252FLockheed%252520Martin%252520Corp_%252520TX%252520facility-by%252520JHVEPhpoto%252520via%252520iStock.jpg&w=3840&q=75)
