Guggenheim Initiates Coverage on Lockheed Martin (NYSE:LMT)

Key Points

• Guggenheim initiated coverage with a Buy rating and a $735 price target, implying about 14.9% upside from the stock’s current price.
• Lockheed Martin beat quarterly earnings and revenue estimates: EPS was $7.97 versus $7.52 expected, while revenue rose 11.3% year over year to $20.71 billion.
• The company plans to invest $420 million to expand its Arkansas operations and add about 650 jobs, as it works to increase production amid strong defense demand and a record $292 billion backlog.

Stock analysts at Guggenheim started coverage on shares of Lockheed Martin (NYSE:LMT - Get Free Report) in a research report issued on Wednesday, Briefing.com reports. The firm set a "buy" rating and a $735.00 price target on the aerospace company's stock. Guggenheim's target price indicates a potential upside of 14.93% from the company's current price.

Several other equities analysts have also recently issued reports on LMT. Bank of America restated a "neutral" rating and issued a $620.00 price target on shares of Lockheed Martin in a research report on Monday, October 26th. Morgan Stanley raised their price target on shares of Lockheed Martin from $653.00 to $690.00 and gave the company an "equal weight" rating in a research note on Friday, July 24th. TD Cowen cut their price target on shares of Lockheed Martin from $600.00 to $570.00 and set a "hold" rating on the stock in a report on Friday, October 9th. Vertical Research raised shares of Lockheed Martin from a "hold" rating to a "buy" rating and set a $600.00 price objective on the stock in a research note on Wednesday, October 14th. Finally, UBS Group increased their price objective on Lockheed Martin from $653.00 to $692.00 and gave the company a "buy" rating in a report on Friday, October 23rd. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Lockheed Martin currently has a consensus rating of "Moderate Buy" and an average price target of $647.00.

Lockheed Martin Stock Performance

NYSE:LMT opened at $639.52 on Wednesday. The stock has a market cap of $147.74 billion, a P/E ratio of 22.72, a price-to-earnings-growth ratio of 1.36 and a beta of 0.07. The company has a current ratio of 1.26, a quick ratio of 1.10 and a debt-to-equity ratio of 2.04. The stock's 50-day moving average is $547.27 and its 200-day moving average is $569.64. Lockheed Martin has a 1-year low of $437.25 and a 1-year high of $692.00.

Lockheed Martin (NYSE:LMT - Get Free Report) last released its quarterly earnings data on Thursday, October 22nd. The aerospace company reported $7.97 earnings per share (EPS) for the quarter, beating the consensus estimate of $7.52 by $0.45. The company had revenue of $20.71 billion during the quarter, compared to the consensus estimate of $20.48 billion. Lockheed Martin had a return on equity of 83.41% and a net margin of 8.23%. The firm's revenue was up 11.3% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $6.95 earnings per share. Equities research analysts anticipate that Lockheed Martin will post 30.66 earnings per share for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of LMT. BlackRock Inc. acquired a new position in Lockheed Martin in the second quarter valued at $9,617,574,000. Corient Private Wealth LP acquired a new stake in shares of Lockheed Martin during the second quarter worth about $101,960,000. Bank of New York Mellon Corp acquired a new stake in shares of Lockheed Martin during the second quarter worth about $645,258,000. Legal & General Group Plc purchased a new position in shares of Lockheed Martin during the second quarter worth about $497,469,000. Finally, Sanders Capital LLC grew its holdings in shares of Lockheed Martin by 44.8% during the third quarter. Sanders Capital LLC now owns 3,030,638 shares of the aerospace company's stock worth $1,543,352,000 after buying an additional 937,105 shares during the last quarter. Institutional investors and hedge funds own 74.19% of the company's stock.

Key Headlines Impacting Lockheed Martin

Here are the key news stories impacting Lockheed Martin this week:

• Positive Sentiment: Lockheed plans to invest $420 million to expand its Camden, Arkansas, operations, adding an expected 650 jobs over five years. The investment should increase manufacturing capacity as demand for missiles and other defense products grows. Lockheed Martin Expands in Camden, Arkansas with $420M Investment
• Positive Sentiment: A recent analysis highlights Lockheed’s $58.6 billion multiyear PAC-3 MSE commitment and plans to lift annual production capacity from about 600 to 2,000 interceptors. Its record $292 billion backlog offers revenue visibility, although realizing the benefit depends on scaling output profitably and converting orders into cash flow. The Lockheed Martin Business I’d Watch More Closely Than the F-35
• Neutral Sentiment: Wells Fargo raised its price target to $700 from $600 but kept an equal-weight rating, signaling a higher valuation outlook without a bullish rating change. Wells Fargo price-target update
• Negative Sentiment: Lockheed agreed to pay $29.5 million to settle a federal probe into its diversity efforts. The payment is modest relative to the company’s scale, but the investigation and settlement may weigh on sentiment toward its government-contractor business. Lockheed Martin to Pay $29.5 Million to Settle Federal Probe Over Diversity Efforts

Lockheed Martin Company Profile

Lockheed Martin Corporation is a global security and aerospace company headquartered in Bethesda, Maryland. Formed in 1995 through the merger of Lockheed Corporation and Martin Marietta, the company develops and produces advanced defense, aerospace, and technology systems for government and commercial customers.

Its principal business areas include Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space. Products and services include military aircraft such as the F-35 Lightning II, C-130 Hercules, and F-16 Fighting Falcon; missile-defense and precision-strike systems; helicopters and naval systems; command, control, communications, and intelligence technologies; satellites; space exploration systems; and other classified space and defense programs.

Lockheed Martin serves the U.S.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.