Lockheed Martin lands up to $1.2b for missile targeting moving ships

Lockheed Martin (LMT) won a $1.2B U.S. Army contract for the next version of its Precision Strike Missile, moving the program toward production. The contract covers initial purchases, additional orders, and continued development. The missile completed its second flight test in August, demonstrating its ability to engage moving maritime targets. Lockheed Martin plans to expand manufacturing capacity to support increased production.

Lockheed Martin (NYSE:LMT) won a $1.2B U.S. Army contract for the next version of its Precision Strike Missile (PrSM). The deal covers initial orders, future production, and development. The missile, tested successfully twice this year, targets moving land and maritime objectives. Lockheed plans to expand production and scale output. Analysts have mixed ratings, with price targets ranging from $650.63 to $691. The stock trades at 19.7x earnings.

U.S. stock futures were mixed on Tuesday, with S&P 500 futures rising and Nasdaq 100 futures falling. Treasury Secretary announced sanctions on Iranian airlines and financial institutions, causing energy prices to rise. Several companies reported earnings, including AutoZone and Thor Industries. On Holding (ONON) rose 2.67% after announcing a buyback and new financial targets. Lennar (LEN) gained 1.09% following Berkshire Hathaway's disclosed stake.

Lockheed Martin received a $200M U.S. Army contract to upgrade M270 Multiple Launch Rocket Systems to the M270A2 standard, part of a series of contracts since 2019. The upgrades include new engines, armored cabs, and a shared fire-control system with HIMARS. The Army aims to modernize its fleet of 225 M270A1 and 160 decommissioned M270A0 launchers for service through 2050.

The U.S. Army awarded Lockheed Martin a $1.2B contract for PrSM Increment 2, a next-gen missile with enhanced targeting capabilities. The contract covers production and development, with flight tests planned for 2027. The missile, compatible with HIMARS and M270A2 launchers, can strike moving targets at over 499 km range.

Lockheed Martin (LMT) secured a contract worth up to $1.2B for its Precision Strike Missile program. Shares are at $535.40, with a 1-year return of 14.33%. Analysts suggest the company may be undervalued, with a fair value estimate of $673.88, citing recent contract wins and strong demand in defense.