LMT Gets A Price Target Cut From Bernstein – Firm Says Defense Stock Setup Remains ‘Difficult’

• Bernstein lowered its price target on LMT to $564 from $629, maintaining a ‘Market Perform’ rating.
• Vertical Research upgraded LMT to ‘Buy’ from ‘Hold’ with a $600 price target, projecting about 11% annual growth in the company’s missile division through the end of the decade.
• Lockheed Martin and Avio signed a cooperation agreement to expand U.S. production of solid rocket motors for the ER GMLRS and Precision Strike Missile programs.

LMT shares drew investor attention on Wednesday as analysts offered divergent takes, with Bernstein slashing its price target on the stock while Vertical Research upgraded it.

According to The Fly, Bernstein lowered its price target on the stock to $564 from $629 while maintaining a ‘Market Perform’ rating. Vertical Research upgraded the stock to ‘Buy’ from ‘Hold’ with a $600 price target.

LMT shares traded 3% higher at the time of writing.

Bernstein Flags Defense Budget Uncertainty

Bernstein said the third-quarter setup for U.S. defense remains ‘difficult’ because the budget is stalled in Congress, preventing the fiscal 2027 budget from being fully passed and delaying funding for multiple programs.

The firm said the path to a budget remains uncertain, with the Nov. 3 midterm elections potentially providing some clarity. Bernstein sees little that could help defense stocks before the election, according to The Fly.

Vertical Research Points To Missile Growth

According to The Fly, Vertical Research analyst Robert Stallard upgraded Lockheed Martin following a sell-off in the shares. While acknowledging uncertainty around the U.S. defense budget, Stallard pointed to bipartisan support for increased missile spending.

Stallard expects Lockheed Martin’s missile division to grow by about 11% annually through the end of the decade.

Lockheed Martin Expands Missile Production Partnership

Separately, Lockheed Martin and Avio announced a strategic cooperation agreement on Tuesday, Oct. 13, to expand U.S. production of solid rocket motors.

Following qualification of the motors, the initial work will focus on the Extended Range Guided Multiple Launch Rocket System (ER GMLRS) and Precision Strike Missile (PrSM). Production is planned at Avio USA’s facility under construction in Hurt, Virginia.

The agreement gives Lockheed Martin access to a share of Avio’s merchant supply capacity for the two programs. The companies said the arrangement is intended to strengthen the U.S. solid-rocket motor supply chain and create an opportunity to increase production of missile systems. Avio has launched an investment of more than $500 million in new U.S. solid rocket motor production capacity.

Lockheed Martin’s Q3 Earnings: What Analysts Expect

Lockheed Martin is scheduled to report its third-quarter results before the market opens on Oct. 22, the company confirmed. Analysts tracked by Fiscal AI expect earnings of $7.43 per share on revenue of $20.44 billion.

According to Koyfin data, 13 of the 23 analysts covering the stock rate it ‘Hold’, while nine rate it either ‘Buy’ or ‘Strong Buy’.

How Retail Views LMT

Retail sentiment on Stocktwits remained in the ‘Bearish’ territory over the past 24 hours.

One Stocktwits user believes Lockheed Martin and Northrop Grumman are good long-term investments.

LMT shares have gained over 6% year-to-date.

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