Morgan Stanley upgrades Lockheed Martin to Overweight after 10‑year F‑35 framework deal
Morgan Stanley raised its rating on Lockheed Martin to Overweight and lifted its price target to $835 from $690, citing a new 10‑year F‑35 framework agreement with the Pentagon that secures production of 156 jets per year. The upgrade followed Lockheed’s strong third‑quarter 2026 results, which showed revenue of $20.7 billion and diluted EPS of $7.97, both beating estimates. Analysts also noted a 24% year‑over‑year rise in Missiles and Fire Control sales and a record backlog of $292 billion. The stock jumped more than 5% on the news.
Why it matters
Morgan Stanley’s target of $835 implies about 38% upside from the closing price of $604.18 on October 26, giving investors a clear valuation benchmark (the firm’s note says). The upgrade also signals reduced perceived risk from the F‑35 program, which could support higher future cash flows.
Key facts
- 1Morgan Stanley upgraded Lockheed Martin to Overweight and raised its price target to $835 from $690. 247wallst.com
- 2The upgrade was based on a 10‑year F‑35 framework agreement covering 850 jets at 156 aircraft per year. 247wallst.com
- 3Lockheed reported third‑quarter 2026 revenue of $20.7 billion. 247wallst.com
- 4Diluted earnings per share for Q3 2026 were $7.97, beating the consensus estimate of $7.52. 247wallst.com
- 5Missiles and Fire Control sales grew 24% year‑over‑year to $4.50 billion. 247wallst.com
- 6Lockheed’s backlog reached a record $292.0 billion. 247wallst.com
Summary written by AlphAI AI Desk from 9 of 9 sources. Not investment advice. Figures are as stated by the linked sources.