Lockheed Martin (NYSE:LMT) Price Target Raised As Earnings Model Adjusted

Lockheed Martin's stock (NYSE:MT) has been given a boost on Wall St today, with an upside revision in price target pushing expectations higher. Recent adjustments to financial models and earnings estimates, coupled with significant corporate events, have collectively shaped the investment landscape for the aerospace and defense giant.

Susquehanna increased its price target on Lockheed Martin to $590 from $490, signaling confidence in the defense industry's favorable trends. Their model update anticipated the impact of a substantial Reconciliation Bill, potentially driving US defense spending to record highs.

While the company exceeded earnings expectations with an adjusted EPS of $6.84 versus the estimated $6.39, a conservative revenue growth forecast for 2025, projecting low-single-digit increases, fell short of analyst consensus. Despite this, Lockheed Martin’s robust backlog of $165 billion and anticipated growth from geopolitical tensions remain key strengths.

Second-quarter results complicated the picture. Lockheed Martin reported a significant drop in profit, with net income plummeting nearly 80% due to a $1.6 billion pre-tax charge. The charge was largely related to challenges with a classified program within its Aeronautics segment and international helicopter programs in its Sikorsky unit. Even with these setbacks, adjusted profit still exceeded estimates at $7.29 per share, though revenue fell short at $18.16 billion versus the projected $18.57 billion.

While geopolitical factors and strong backlogs support long-term growth, near-term challenges and cautious forecasts have introduced volatility. LMT clearly still has the backing of many on Wall Street, and while the move off lows has been strong, there is a ways to go in order to return the stock to green on the year, with shares 15% lower in 12 months.