LMT Stock Rises Overnight: Analysts Back Lockheed Martin On Record Backlog, L-35 Boost

Morgan Stanley upgraded Lockheed Martin to ‘Overweight,’ seeing a 38% upside.

• Jefferies raised Lockheed Martin’s price target after the company’s 10-year F-35 agreement to produce 156 jets. 
• Bank of America raised its target to $620 but warned of potential cash flow risks. 
• Morningstar raised Lockheed Martin’s fair value estimate to $680, seeing 13% upside. 

Lockheed Martin Corp. (LMT) stock ticked higher overnight as Wall Street analysts grew more optimistic about the defense contractor’s outlook, citing a record backlog and improved visibility from its decade-long F-35 production agreement. Morgan Stanley upgraded the stock, while Jefferies raised its price target, even as Bank of America flagged potential cash flow risks. 

Lockheed Martin stock edged 0.5% higher overnight, heading into Monday. The stock’s 9% gain last week was its best performance since July. The stock is also on track for its best year since 2022. 

Wall Street Raises Price Targets On Lockheed Martin

On Sunday, Jefferies analyst Sheila Kahyaoglu increased the firm's price target on Lockheed Martin to $615 from $595 while maintaining a ‘Hold’ rating. The analyst said the company's third-quarter results helped address uncertainty surrounding F-35 production, with plans to sustain an annual output of 156 aircraft for the next decade. 

The program contributes nearly 30% of Lockheed Martin's revenue. Last week, Lockheed Martin and the Department of War reached a preliminary arrangement to produce and support at least 850 F-35 aircraft over 10 years. The plan aims to preserve annual manufacturing capacity of 156 jets while improving the stealth fighter program's supply network. Lockheed Martin has committed to investing at least $7 billion of its own money in the effort.

Morgan Stanley upgraded Lockheed Martin to ‘Overweight’ from ‘Equal Weight’ and set an $835 price target, suggesting a 38% upside from the stock’s last close. Bank of America similarly raised its price target on LMT to $620 from $600 but kept a ‘Neutral’ rating. It praised the company’s stronger-than-expected Q3 results and improved outlook but warned that its 2026 cash flow outlook of $7.8 billion to $8 billion could pose risks. 

Morningstar Sees Potential Upside For Lockheed Martin

Morningstar analyst Nicolas Owens raised his fair value estimate for Lockheed Martin to $680 per share from $650 following the company's Q3 results and added that the stock trades approximately 13% below its revised valuation.

LMT Stock: Retail View 

On Stocktwits, retail sentiment around the stock remained ‘bullish’. 

A user said, “Lockheed Martin Corporation (LMT): The clear gold standard among defense contractors, showing massive year-to-date strength up over 36%. Supported by a massive $165 billion order backlog, they are practically recession-proof and benefit directly as global governments structurally increase long-term defense budgets. Management recently increased its dividend by 5%, making it an excellent defensive buffer.”

LMT stock has gained 24% year-to-date. 

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