Lockheed Martin (NYSE: LMT) rose 3.3 percent Wednesday as Vertical Research initiated coverage with a buy rating and $600 price target—implying 24 percent upside from current levels.
Vertical Research analyst Robert Stallard points to a specific revenue floor: U.S. defense spending on air-defense missiles, particularly Patriot systems that Lockheed manufactures. The Iran conflict depleted U.S. stockpiles, creating a multiyear replenishment cycle that Stallard argues will flow to Lockheed regardless of broader defense budget volatility.
Bernstein takes the opposite view, cutting its target to $564 and flagging congressional delays in defense appropriations and uncertainty around the U.S. defense budget path this year.
Lockheed trades at under 20 times earnings after a 23 percent decline from 2024 highs. The stock yields 2.9 percent. Wall Street consensus expects 17 percent annual earnings growth over the next five years.
