SIG analyst Charles Minervino downgrades $Lockheed Martin (LMT.US)$ to a hold rating, and adjusts the target price from $695 to $590.
According to TipRanks data, the analyst has a success rate of 44.5% and a total average return of -1.9% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Lockheed Martin (LMT.US)$'s main analysts recently are as follows:
Barclays notes that aerospace is likely to generate positive relative earnings growth and anticipates further outperformance in 2025, with greater benefits leaning towards original equipment rather than aftermarket. On the defense side, performance has been weaker and the situation remains challenging, largely due to increased budget risks and uncertainties associated with government fiscal policies.
The outlook for commercial aerospace remains guarded, reflecting anticipated delays in the OEM build ramp, consistent with previous assessments. Discussions late in the fourth quarter support this perspective. In the defense sector, persistent concerns over funding and DOGE risk are expected to continue overshadowing the market, with the final quarter unlikely to provide significant clarity. There is potential for Lockheed Martin to pre-fund its 2025 pension obligations and/or proceed with the remaining MFC option exercise charges; both moves could be seen favorably. However, any increases in government services guidance may be tempered by the ongoing uncertainties related to the continuing resolution extension into March.
The revenue outlook for Defense and IT services is considered even-keeled and currently without optimistic drivers, according to an analyst discussing expectations for the Aerospace and Defense Electronics sector through 2025. In comparison, the commercial aerospace segment continues to be favored going into 2024, a stance that is anticipated to remain steady, with a particular focus on names heavily linked to the 2025 aftermarket.
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