Defense giant Lockheed Martin (LMT) revealed its plans to launch a budget-friendly cruise missile priced at just $150,000, significantly undercutting traditional missile systems that typically cost millions per unit. With this missile, the company aims to meet U.S. military demand for cost-effective defense solutions amid rising tensions with China in the Pacific.
Based in the U.S., Lockheed Martin is a defense and aerospace company specializing in military aircraft, space systems, and advanced weaponry.
More Details on LMT’s Budget Cruise Missile
The U.S. is building a stockpile of readily available and cost-effective weapons to counter China’s growing influence in the Indo-Pacific region. Additionally, Russia’s invasion of Ukraine has led the U.S. and its allies to rethink their approach to military strategy, shifting towards affordable options. This strategy focuses on maintaining a large supply of cost-effective weapons to ensure readiness for potential conflicts.
In response, Lockheed Martin introduced the common multi-mission truck (CMMT) missile, a new initiative focused on creating a family of cost-effective, modular weapons using existing components. Moreover, the CMMT system is built with flexibility in mind, meaning it can be adapted for different types of military operations. This adaptability allows the military to customize the weapon for various combat scenarios without needing to develop entirely new systems, making it a cost-effective and efficient solution.
The company further stated that if the Pentagon proceeds with the purchase, Lockheed could manufacture up to 2,500 units annually once the production line is up and running.
Is Lockheed Martin a Good Stock Buy?
According to TipRanks, LMT stock has received a Moderate Buy consensus rating, with seven Buys and nine Holds assigned in the last three months. The average price target for Lockheed Martin is $531.75, suggesting a potential upside of 17.6% from the current level.
Year-to-date, LMT stock has declined by 7%.
