Shareholder Alert for Terran Orbital Corporation (LLAP)
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 03 2024
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Analyst Views on LMT
Wall Street analysts forecast LMT stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for LMT is 535.50 USD with a low forecast of 430.00 USD and a high forecast of 605.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
4 Buy
7 Hold
1 Sell
Hold
Current: 602.760
Low
430.00
Averages
535.50
High
605.00
Current: 602.760
Low
430.00
Averages
535.50
High
605.00
About LMT
Lockheed Martin Corporation is a global aerospace and defense company. The Company is engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. Its segments include Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS) and Space. Aeronautics segment is engaged in the research, design, development, manufacture, integration, sustainment, support and upgrade of advanced military aircraft. MFC segment provides air and missile defense systems, manned and unmanned ground vehicles, energy management solutions, and others. RMS segment designs, manufactures, services and supports various military and commercial helicopters, surface ships, sea and land-based missile defense systems, and others. Its Space segment is engaged in the research and design, development, engineering and production of satellites, space transportation systems, and strategic, advanced strike, and defensive systems.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Lockheed Martin Reports Strong Performance and Growth Outlook
- Significant Performance Growth: Lockheed Martin's sales reached $75 billion in 2025, reflecting a 6% year-over-year increase with contributions from all business segments, showcasing the company's strong market position in defense.
- Record Backlog: The company reported a backlog of $194 billion for 2025, a 17% increase year-over-year, representing 2.5 times its annual sales, providing revenue certainty for multiple years and indicating robust market demand.
- Strategic Contracts Boost Production: Landmark agreements with the U.S. Department of Defense have quadrupled THAAD interceptor production from 96 to 400 units annually, while PAC-3 missile production will triple to 2,000 units, significantly enhancing production capacity.
- Optimistic Future Outlook: Sales guidance for 2026 is projected between $77.5 billion and $80 billion, with management anticipating over 25% year-over-year growth in operating profit, indicating sustained strong demand for combat-proven systems like the F-35 and HIMARS.
See More
Lockheed Martin Secures $249M Contract for Electronic Warfare System
- Significant Contract Value: Lockheed Martin has been awarded a $249 million contract that encompasses spares, repairs, and engineering services for the Surface Electronic Warfare Improvement Program, indicating robust demand in the defense sector.
- Project Timeline: The work will be conducted in Liverpool, New York, and is expected to be completed by February 2031, highlighting the company's ongoing commitment and strategic planning in long-term defense projects.
- Diverse Contract Nature: This contract is a cost-plus-fixed-fee and firm-fixed-price IDIQ contract, reflecting Lockheed Martin's flexibility and adaptability in managing complex defense projects, thereby enhancing its competitive edge in the market.
- Contracting Activity Context: The contract is awarded by the Naval Surface Warfare Center Crane in Indiana, further solidifying Lockheed Martin's collaboration with the U.S. Navy and suggesting potential for more cooperative opportunities in the future.
See More
Surge in U.S. Layoffs Alters Investment Strategies
- Surge in Layoffs: January saw over 108,000 layoffs in the U.S., marking the worst start to the year since 2009, with hiring plans plummeting to record lows, indicating heightened economic uncertainty according to Challenger, Gray & Christmas.
- Focus on Wealth Preservation: Post-layoff, wealth creation takes a backseat to wealth preservation strategies, as financial planners recommend maintaining a substantial emergency fund to cover essential expenses like rent and insurance, thereby mitigating risks during market volatility.
- Income-Focused ETFs Gain Traction: With salary income halted, investors are turning to ETFs designed for cash flow, such as iShares Core U.S. Aggregate Bond ETF and Vanguard Total Bond Market ETF, which can modestly supplement cash reserves during unemployment, although they are not substitutes for regular paychecks.
- Gradual Investment Approach: Investing severance packages all at once exposes individuals to market timing risks; thus, gradual allocation strategies are advised to smooth entry points, especially when job searches extend longer than anticipated, ensuring liquidity amid economic uncertainty.
See More
Oil Prices Surge as U.S.-Iran Tensions Escalate
- Market Reaction: Oil prices surged with WTI crude rising 1.1% to $64.70 and Brent crude climbing to $69 immediately after news of stalled talks, indicating heightened market sensitivity to geopolitical risks.
- Military Conflict Risk: Following U.S. confirmation of engagement between the USS Abraham Lincoln carrier strike group and Iranian forces, the odds of a U.S. military strike on Iran by the end of the month spiked to 35%, reflecting investor concerns over escalating tensions.
- Diplomatic Uncertainty: Despite ongoing talks in Turkey, Iran's demand to limit discussions to nuclear capabilities has led Secretary of State Rubio to insist on including missile programs and human rights issues, increasing the risk of negotiations breaking down.
- Shifting Market Expectations: Should the State Department announce the cancellation of the Middle East envoy's trip to Istanbul within the next 24 hours, the market will likely treat diplomatic efforts as nearly dead, potentially driving further volatility in oil prices and defense stocks like Lockheed Martin.
See More
Trump's Orders May Pressure Defense Contractors' Margins
- Surge in Defense Budget: Trump's proposal to increase the defense budget to $1.5 trillion by 2027, equivalent to more than double the GDP of the Netherlands, is expected to drive revenue growth for defense companies like Lockheed Martin, despite facing margin pressures.
- Mixed Financial Guidance: Lockheed Martin anticipates a 5% revenue growth in 2026, reaching $78.75 billion, but a significant ramp in capital spending will lead to a decline in free cash flow, highlighting the company's challenges in balancing expansion with profitability.
- Record Backlog: The company's current backlog of $194 billion provides strong support for future growth, although Trump's orders may impose higher execution pressures on defense contractors, impacting their capital allocation policies.
- Positive Market Reaction: Despite structural margin pressures, Lockheed Martin's stock surged 31.1% in January, reflecting market optimism regarding defense spending plans, with investors closely monitoring future guidance on capital spending and margins.
See More
Mercury Systems, a Defense Contractor, Exceeded Earnings Expectations—So Why Did Its Stock Drop 19%?
- Earnings Report Reactions: Reactions to earnings reports can be unpredictable and vary widely among investors and analysts.
- Market Sentiment: The overall market sentiment can significantly influence how earnings reports are received, regardless of the actual financial performance.
- Investor Expectations: Expectations set prior to the earnings release play a crucial role in shaping the market's response to the results.
- Volatility: Earnings announcements often lead to increased volatility in stock prices as investors react to the news.
See More
Lockheed Martin Reports Strong Performance and Growth Outlook
- Significant Performance Growth: Lockheed Martin's sales reached $75 billion in 2025, reflecting a 6% year-over-year increase with contributions from all business segments, showcasing the company's strong market position in defense.
- Record Backlog: The company reported a backlog of $194 billion for 2025, a 17% increase year-over-year, representing 2.5 times its annual sales, providing revenue certainty for multiple years and indicating robust market demand.
- Strategic Contracts Boost Production: Landmark agreements with the U.S. Department of Defense have quadrupled THAAD interceptor production from 96 to 400 units annually, while PAC-3 missile production will triple to 2,000 units, significantly enhancing production capacity.
- Optimistic Future Outlook: Sales guidance for 2026 is projected between $77.5 billion and $80 billion, with management anticipating over 25% year-over-year growth in operating profit, indicating sustained strong demand for combat-proven systems like the F-35 and HIMARS.
See More
Lockheed Martin Secures $249M Contract for Electronic Warfare System
- Significant Contract Value: Lockheed Martin has been awarded a $249 million contract that encompasses spares, repairs, and engineering services for the Surface Electronic Warfare Improvement Program, indicating robust demand in the defense sector.
- Project Timeline: The work will be conducted in Liverpool, New York, and is expected to be completed by February 2031, highlighting the company's ongoing commitment and strategic planning in long-term defense projects.
- Diverse Contract Nature: This contract is a cost-plus-fixed-fee and firm-fixed-price IDIQ contract, reflecting Lockheed Martin's flexibility and adaptability in managing complex defense projects, thereby enhancing its competitive edge in the market.
- Contracting Activity Context: The contract is awarded by the Naval Surface Warfare Center Crane in Indiana, further solidifying Lockheed Martin's collaboration with the U.S. Navy and suggesting potential for more cooperative opportunities in the future.
See More
Surge in U.S. Layoffs Alters Investment Strategies
- Surge in Layoffs: January saw over 108,000 layoffs in the U.S., marking the worst start to the year since 2009, with hiring plans plummeting to record lows, indicating heightened economic uncertainty according to Challenger, Gray & Christmas.
- Focus on Wealth Preservation: Post-layoff, wealth creation takes a backseat to wealth preservation strategies, as financial planners recommend maintaining a substantial emergency fund to cover essential expenses like rent and insurance, thereby mitigating risks during market volatility.
- Income-Focused ETFs Gain Traction: With salary income halted, investors are turning to ETFs designed for cash flow, such as iShares Core U.S. Aggregate Bond ETF and Vanguard Total Bond Market ETF, which can modestly supplement cash reserves during unemployment, although they are not substitutes for regular paychecks.
- Gradual Investment Approach: Investing severance packages all at once exposes individuals to market timing risks; thus, gradual allocation strategies are advised to smooth entry points, especially when job searches extend longer than anticipated, ensuring liquidity amid economic uncertainty.
See More
Oil Prices Surge as U.S.-Iran Tensions Escalate
- Market Reaction: Oil prices surged with WTI crude rising 1.1% to $64.70 and Brent crude climbing to $69 immediately after news of stalled talks, indicating heightened market sensitivity to geopolitical risks.
- Military Conflict Risk: Following U.S. confirmation of engagement between the USS Abraham Lincoln carrier strike group and Iranian forces, the odds of a U.S. military strike on Iran by the end of the month spiked to 35%, reflecting investor concerns over escalating tensions.
- Diplomatic Uncertainty: Despite ongoing talks in Turkey, Iran's demand to limit discussions to nuclear capabilities has led Secretary of State Rubio to insist on including missile programs and human rights issues, increasing the risk of negotiations breaking down.
- Shifting Market Expectations: Should the State Department announce the cancellation of the Middle East envoy's trip to Istanbul within the next 24 hours, the market will likely treat diplomatic efforts as nearly dead, potentially driving further volatility in oil prices and defense stocks like Lockheed Martin.
See More
Trump's Orders May Pressure Defense Contractors' Margins
- Surge in Defense Budget: Trump's proposal to increase the defense budget to $1.5 trillion by 2027, equivalent to more than double the GDP of the Netherlands, is expected to drive revenue growth for defense companies like Lockheed Martin, despite facing margin pressures.
- Mixed Financial Guidance: Lockheed Martin anticipates a 5% revenue growth in 2026, reaching $78.75 billion, but a significant ramp in capital spending will lead to a decline in free cash flow, highlighting the company's challenges in balancing expansion with profitability.
- Record Backlog: The company's current backlog of $194 billion provides strong support for future growth, although Trump's orders may impose higher execution pressures on defense contractors, impacting their capital allocation policies.
- Positive Market Reaction: Despite structural margin pressures, Lockheed Martin's stock surged 31.1% in January, reflecting market optimism regarding defense spending plans, with investors closely monitoring future guidance on capital spending and margins.
See More
Mercury Systems, a Defense Contractor, Exceeded Earnings Expectations—So Why Did Its Stock Drop 19%?
- Earnings Report Reactions: Reactions to earnings reports can be unpredictable and vary widely among investors and analysts.
- Market Sentiment: The overall market sentiment can significantly influence how earnings reports are received, regardless of the actual financial performance.
- Investor Expectations: Expectations set prior to the earnings release play a crucial role in shaping the market's response to the results.
- Volatility: Earnings announcements often lead to increased volatility in stock prices as investors react to the news.
See More
