Shares of Lockheed Martin Corp
There has been a positive inflection in the company's sales growth, F-35 deliveries have resumed and the MFC segment's outlook is improving, according to RBC Capital Markets.
Analyst Ken Herbert upgraded the rating for Lockheed Martin from Sector Perform to Outperform, while raising the price target from $500 to $600.
The Lockheed Martin Thesis: After the company's growth of around 5% in the first half of 2024, "we think confidence on a return to growth is well established," Herbert said in the upgrade note.
While there is uncertainty around Lockheed Martin's growth, "we believe a LSD growth for its US business across 2024-2026 is reasonable, and international sales will see HSD growth," he added.
The analyst estimates 95 F-35 deliveries in 2024 and around 190 in 2025.
Investments in several programs "support a multi-year bullish outlook" for the MFC segment, with revenues expected to grow by about 11% in 2024 and 8% in 2025, he further stated.
LMT Price Action: Shares of Lockheed Martin had declined by 1.56% to $540.19 at the time of publication on Monday.
