LMT Stock Draws Downgrades After Boeing Wins Next Generation Air Dominance Program: Retail Stays Extremely Bearish

Defense major Lockheed Martin Corp. (LMT) shares traded in the red in Monday’s pre-market session after the stock drew downgrades from Wall Street after Boeing won the U.S. Air Force's Next Generation Air Dominance program.

According to TheFly, BofA analyst Ronald Epstein downgraded Lockheed Martin to ‘Neutral’ from ‘Buy’ and reduced the price target of $485 from $685.

The analyst noted that the brokerage and most industry watchers and investors had placed significantly higher odds on Lockheed winning the program.

He also indicated that with the decision in favor of Boeing, the shares are expected to be “largely rangebound. "

The Next Generation Air Dominance program will replace Lockheed Martin's F-22 Raptor with a crewed aircraft built to enter combat alongside drones.

"We've given an order for a lot. We can't tell you the price," Trump told reporters in the Oval Office on Friday.

"Our allies are calling constantly," Trump added. "They want to buy them also.”

Although the plane's design remains secret, it might include stealth, advanced sensors, and cutting-edge engines.

Following Boeing’s win, Lockheed said that it was disappointed.

“We are committed to advancing state-of-the-art air dominance to ensure America has the most revolutionary systems to counter the rapidly evolving threat environment. While disappointed with this outcome, we are confident we delivered a competitive solution. We will await further discussions with the U.S. Air Force,” the company stated.

Meanwhile, Melius Research downgraded Lockheed Martin to ‘Hold’ from ‘Buy’ and reduced the price target to $483 from $603.

The brokerage attributed the downgrade to competitive losses and growing concerns over Europe's efforts to reduce its reliance on U.S. defense contractors. Europe's moves may limit the company's export opportunities, it noted.

Melius also highlighted that with F-35 production rates at their peak, competitive losses make Lockheed's long-term growth algorithm more challenging.

On Stocktwits, retail sentiment continued to trend in the ‘extremely bearish’ territory (23/100), albeit with a marginally higher score.

LMT’s Sentiment Meter and Message Volume as of 7:05 a.m. ET on March 24, 2025 | Source: Stocktwits

Recent comments by Stocktwits users indicated a mixed take on the stock.

LMT stock has lost over 8% in 2025 and is down nearly 1.5% in the past 12 months.

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