Truist Upgrades Lockheed Martin to Buy, Predicts 12% Gain in 12 Months
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 11h ago
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Source: NASDAQ.COM
- Price Prediction: Truist Securities analyst Michael Ciarmoli upgraded Lockheed Martin to a buy rating with a price target of $605, which implies a potential 12% gain over the next 12 months, alongside a nearly 2.7% dividend yield.
- Defense Budget Impact: Following President Trump's call to expand the U.S. defense budget to $1.5 trillion for fiscal 2027, Lockheed Martin's stock rose 4.2% on Friday, reflecting strong market sentiment towards defense spending.
- Contract Acquisition: The recent securing of a significant contract to supply the U.S. military with Patriot missiles is expected to boost performance in Lockheed's most profitable missiles and fire control segment, further enhancing market confidence.
- Valuation Considerations: Although Lockheed Martin's P/E ratio stands at 28.5 and its sales price at 1.6 times, slightly above the preferred 1x sales valuation, its compelling risk/reward profile for 2026 remains attractive, especially amid ongoing geopolitical tensions.
Analyst Views on LMT
Wall Street analysts forecast LMT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LMT is 544.18 USD with a low forecast of 500.00 USD and a high forecast of 630.00 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.
11 Analyst Rating
5 Buy
6 Hold
0 Sell
Moderate Buy
Current: 518.440
Low
500.00
Averages
544.18
High
630.00
Current: 518.440
Low
500.00
Averages
544.18
High
630.00
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.
