Rising Defense Spending: The U.S. defense budget is projected to increase to $1.5 trillion by 2027, driven by geopolitical tensions and the need for advanced military capabilities, leading to a surge in demand for defense stocks.
Lockheed Martin's Growth: Lockheed Martin remains a leader in U.S. defense contracting, expanding its global footprint and reporting a significant backlog of nearly $180 billion, which positions it favorably for future contracts.
Boeing's Challenges: Boeing faces ongoing difficulties, including a suspended dividend and cash flow issues, but is expected to ramp up production of its MAX aircraft to meet a growing backlog, which exceeds $600 billion.
Leidos Holdings' Position: Leidos Holdings is emerging as a strong player in modern defense technology, leveraging AI and cybersecurity solutions, and has secured a $455 million contract with the Air Force, indicating its potential for growth in the defense sector.
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
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.
4 Buy
7 Hold
1 Sell
Hold
Current: 593.910
Low
430.00
Averages
535.50
High
605.00
Current: 593.910
Low
430.00
Averages
535.50
High
605.00
Seaport Research
Buy
maintain
$544 -> $664
2026-01-22
New
Reason
Seaport Research
Price Target
$544 -> $664
AI Analysis
2026-01-22
New
maintain
Buy
Reason
Seaport Research raised the firm's price target on Lockheed Martin to $664 from $544 and keeps a Buy rating on the shares. The firm believes Defense spending growth will be "far bigger and last longer" than expected, the analyst tells investors.
Truist
Michael Ciarmoli
Hold
to
Buy
upgrade
$605
2026-01-09
Reason
Truist
Michael Ciarmoli
Price Target
$605
2026-01-09
upgrade
Hold
to
Buy
Reason
Truist analyst Michael Ciarmoli upgraded Lockheed Martin to Buy from Hold with a $605 price target.
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Truist
Hold -> Buy
upgrade
$500 -> $605
2026-01-09
Reason
Truist
Price Target
$500 -> $605
2026-01-09
upgrade
Hold -> Buy
Reason
Truist upgraded Lockheed Martin to Buy from Hold with a price target of $605, up from $500. Lockheed's 2025 underperformance and attractive valuation create a favorable risk/reward setup for 2026 as execution improves and EACs decline, the analyst tells investors in a research note. With DOGE concerns fading, strong global demand and capacity expansions are expected to drive double-digit growth in the missiles and fire control segment and support broader program ramp-ups, Truist adds.
JPMorgan
Seth Seifman
Overweight -> Neutral
downgrade
$465 -> $515
2025-12-19
Reason
JPMorgan
Seth Seifman
Price Target
$465 -> $515
2025-12-19
downgrade
Overweight -> Neutral
Reason
JPMorgan analyst Seth Seifman downgraded Lockheed Martin to Neutral from Overweight with a price target of $515, up from $465, as part of its aerospace and defense outlook for 2026. The outlook for sector remains mostly positive into 2026, the analyst tells investors in a research note. The firm cites its our out-year cash flow estimates being below consensus for the downgrade of Lockheed Martin. The company's pension cash flow headwind in 2027 should make it difficult to grow cash flow, contends JPMorgan.
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.
