Key Stats for Lockheed Martin Stock
- Price change for Lockheed Martin stock: 2%
- $LMT Share Price as of Jul. 1: $522
- 52-Week High: $692
- $LMT Stock Price Target: $617
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What Happened?
Citi upgraded Lockheed Martin (LMT) stock to Buy from Neutral on Wednesday, raising its price target to $582 from $571. That implies roughly 14% upside from Tuesday’s close.
The upgrade comes as some investors have pulled back from defense stocks amid concerns about election uncertainty and a potential political shift that could affect defense budgets.
Citi analyst John Godyn acknowledged those fears directly, but argued that Lockheed Martin stock is exactly the kind of name that tends to recover sharply after sector pullbacks.
“We believe LMT is a good example of a defense stock that historically bounces back consistently and sharply after moves lower,” Godyn wrote in his note to clients.
He highlighted the company’s strong fundamentals and the rapid growth of its missile and fire control segment as key reasons for the upgrade.
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What the Market Is Telling Us About Lockheed Martin Stock
Lockheed Martin stock is up about 5% this year, slightly behind the S&P 500. The modest underperformance has created what Citi sees as an opportunity.
The underlying business is in strong shape. In Q1 2026, Lockheed reported first-quarter sales of $18 billion, with its Missiles and Fire Control segment growing 8% year-over-year, driven by production ramps on PAC-3, JASSM, LRASM and PrSM.
The company recently signed a $4.8 billion contract for PAC-3 missile production, part of a broader framework to triple interceptor production rates over the next several years.
It also secured a $1.5 billion contract with the Peruvian Air Force for 12 Block 70 F-16 fighters, with the potential for a second squadron.
The F-35 continues to prove itself in active combat operations, and the initial presidential budget request included an increase in F-35 quantities.
Demand for Lockheed’s systems has rarely been stronger. PAC-3, THAAD and Aegis missile defense systems have all been actively deployed, and production is being scaled aggressively to meet demand.
Management maintained its full-year outlook of mid-single-digit sales growth, $8.4 billion to $8.7 billion in segment operating profit, and $6.5 billion to $6.8 billion in free cash flow.
Near-term headwinds do exist.
- Q1 earnings per share of $6.44 fell 12% year-over-year, partly due to profit adjustments on the F-16 and C-130 programs.
- Free cash flow was a use of $291 million in the quarter due to working capital timing.
- But management expects those dynamics to improve through the rest of the year.
Citi’s case for Lockheed Martin stock isn’t that everything is perfect. It’s that the sell-off tied to political fears doesn’t align with the operational reality of a business with a large and growing backlog.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
