Lockheed Martin shares: Should you buy LMT after Jefferies price target cut
Jefferies cut Lockheed Martin's price target to $575 from $595 while maintaining a Hold rating, citing weaker margins in aeronautics and space; shares are up 16.4% over the past year.
Lockheed Martin Corporation (NYSE:LMT), one of the largest defense manufacturers in the United States, has seen its shares rise 16.4% over the past year and 9.8% year-to-date. However, a recent analyst note from Jefferies has raised questions about the stock's near-term outlook. On June 25, Jefferies cut its price target on Lockheed Martin to $575 from $595 while maintaining a Hold rating, citing expectations of weaker margins in the company's aeronautics and space businesses.
For traders, the price target cut signals potential headwinds for Lockheed Martin's profitability, even as revenue is expected to grow 5% in the upcoming second-quarter earnings report. The defense sector often benefits from geopolitical tensions and government spending, but margin compression in key divisions could weigh on earnings per share. Live commodities prices and charts on NowPrice show how broader market sentiment is reacting to defense sector developments, providing real-time context for traders monitoring LMT.
Looking ahead, investors will focus on Lockheed Martin's Q2 earnings release, expected in the coming weeks, to see if the company can beat the lowered estimates. Key areas to watch include updates on the F-35 program and space contracts. A miss could pressure the stock further, while a beat might validate the current valuation. The $575 price target implies limited upside from current levels, suggesting a cautious stance until margins show improvement.