How Investors May Respond To Lockheed Martin (LMT) Analyst Upgrades and Record Backlog Momentum

• In recent days, Lockheed Martin has received analyst upgrades and renewed coverage driven by robust international order backlogs, new production capacity, and major contract wins, with its dominant role in the F-35 program highlighted.
• Lockheed Martin's expanded dividends and buyback authorization signal increased confidence in ongoing shareholder returns amid resurging demand and geopolitical catalysts.
• Next, we'll examine how Lockheed Martin's record backlog and improved execution affect the company's forward-looking investment narrative.

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Lockheed Martin Investment Narrative Recap

To be a shareholder in Lockheed Martin, you need to believe that advanced military platforms, global defense demand, and a record US$179 billion backlog can drive future growth, even as government budgets shift. The latest analyst upgrades and contract wins further reinforce the importance of international orders as the most important short-term catalyst, but ongoing regulatory and legal headwinds, like the US$4.6 billion IRS tax dispute, remain the largest risk, and the recent news does not materially change this outlook.

Among the recent announcements, Lockheed Martin’s increase in its quarterly dividend by 5%, marking 23 consecutive years of growth, stands out and is relevant in the context of strengthening short-term demand and analyst optimism. This move, combined with a US$2 billion boost to its buyback authorization, is a visible signal of management’s prioritization of shareholder returns as backlog and order visibility increase.

In contrast, investors should be aware that even with strong new orders, unresolved regulatory risks including the company’s ongoing tax dispute with the IRS could…

Read the full narrative on Lockheed Martin (it's free!)

Lockheed Martin's outlook anticipates $81.0 billion in revenue and $7.1 billion in earnings by 2028. This scenario assumes 4.1% annual revenue growth and a $2.9 billion increase in earnings from today's $4.2 billion level.

Uncover how Lockheed Martin's forecasts yield a $528.17 fair value, a 15% upside to its current price.

Exploring Other Perspectives

Twenty-five members of the Simply Wall St Community have estimated Lockheed Martin’s fair value between US$389 and US$629 per share. While many see potential given the current backlog and technology leadership, others weigh ongoing legal and margin risks that may affect future performance, explore these diverse opinions to inform your own view.

Explore 25 other fair value estimates on Lockheed Martin - why the stock might be worth 15% less than the current price!

Build Your Own Lockheed Martin Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Lockheed Martin research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Lockheed Martin research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Lockheed Martin's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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