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Wells Fargo Cuts Lockheed Martin Price Target By ~18%

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  • Wells Fargo analyst Matthew Akers lowered the price target on Lockheed Martin Corp (NYSE: LMT) to $406 (3% upside) from $496 while maintaining the Equal Weight rating on the shares.

  • The analyst believes that LMT will struggle to outgrow its defense peers with large F-35 exposure where sales are flattish from here.

  • Akers says that LMT is still seeing supply chain impacts and expects these to continue through year-end. Delayed agreement on F-35 lot 15-17 deal affected sales and cash in the quarter, to be recovered after the contract is signed.

  • RelatedLockheed Martin Shares Slip On Q2 Miss, Lowered FY22 Guidance

  • The analyst stated that LMT's new contract is not seen as margin dilutive. LMT's outlook assumes continued accelerated payments to suppliers.

  • While LMT did not provide an updated long-term sales outlook, it noted it will take 2-3 years for the "clutch to engage" in recent demand translating to sales (2024 and beyond), said Akers.

  • Morgan Stanley analyst Kristine Liwag also lowered Lockheed Martin's price target to $522 (32% upside) from $525 while maintaining the Overweight ratings on the shares.

  • Price Action: LMT shares are trading higher by 1.20% at $394.92 on the last check Wednesday.

  • Photo Via Wikimedia

Latest Ratings for LMT

Date

Firm

Action

From

To

Mar 2022

Wells Fargo

Maintains

Equal-Weight

Mar 2022

Morgan Stanley

Maintains

Overweight

Feb 2022

Wolfe Research

Upgrades

Peer Perform

Outperform

View More Analyst Ratings for LMT

View the Latest Analyst Ratings

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