Update shared on 05 Nov 2025
Fair value Increased 2.00%Lockheed Martin's analyst price target has risen from $516.56 to $526.88. This change reflects analysts' optimism following robust order activity, an improved revenue growth outlook, and ongoing monitoring of operational performance.
Analyst Commentary
Recent adjustments to Lockheed Martin's price targets and ratings highlight shifting perspectives among market observers ahead of quarterly results. Analysts have identified several factors driving both optimism and caution as the company navigates evolving order activity, operational performance, and sector trends.
Bullish Takeaways- Significant top-line growth expectations, supported by substantial orders for F-35, CH-53K, PAC-3, and additional programs, contribute to confidence in the company's near-term revenue trajectory.
- Improved sentiment across the aerospace and defense sector, with particular strength in aircraft OEM production and resilient demand in the aftermarket, is enhancing Lockheed Martin's growth outlook.
- Upgrades and raised price targets reflect increased optimism about stabilization efforts and future execution as the company continues to address operational hurdles.
- Growth in aftermarket demand, driven by strong passenger travel, engine shop activity, and persistent supply chain challenges for new aircraft, is expected to support continued revenue strength.
- Operational challenges persist in certain business segments, namely Aeronautics, MFC, and RMS. These issues have resulted in recent charges and remain areas of scrutiny for earnings stability.
- Progress toward consistent performance on fixed-price development programs is essential for improved results and will be closely monitored in upcoming reports.
- Macro-level uncertainties, such as the potential risk of a government shutdown, may affect the outlook for defense spending in late 2024 and fiscal year 2026.
- Despite upward price target revisions, some analysts maintain caution on valuation and recommend a measured approach given near-term execution risks.
What's in the News
- The Pentagon is urging missile suppliers, including Lockheed Martin, to significantly ramp up missile production in anticipation of potential conflict scenarios with China (WSJ).
- U.S. Defense Secretary has called for an urgent meeting of top generals at a Virginia Marine Corps base, reflecting escalating defense priorities involving companies such as Lockheed Martin (WaPo).
- Turkey is planning to purchase hundreds of Lockheed Martin fighter jets and Boeing airliners, with a focus on increasing local production of aircraft parts through potential deals that could exceed $10 billion (Bloomberg).
- President Trump is set to reconsider arms export rules to expand international sales of advanced U.S. military drones, with potential impacts for producers such as Lockheed Martin (Reuters).
- Lockheed Martin aims to have Rheinmetall manufacture missiles in Germany, expanding European production partnerships for critical weapons systems (Reuters).
Valuation Changes
- Consensus Analyst Price Target has risen slightly, moving from $516.56 to $526.88.
- Discount Rate has fallen moderately, declining from 8.11% to 7.78%.
- Revenue Growth projection has increased from 3.24% to 3.64%.
- Net Profit Margin has edged down marginally, from 8.86% to 8.84%.
- Future P/E ratio expectation has decreased slightly, shifting from 19.81x to 19.66x.
Disclaimer
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