Lockheed Martin (NYSE:LMT) shares are ticking higher today after the Defense and aerospace giant bagged a $17 billion contract from the Missile Defense Agency to develop next-generation interceptors. The stock has also scored a rating upgrade from J.P. Morgan.
Cutting Edge of Defense
Under the contract, Lockheed will deliver the U.S.’s new homeland missile defense capability, the Next Generation Interceptor (NGI). The interceptor is set to be the most advanced in the history of the ground-based Midcourse Defense (GMD) system, capable of protecting against long-range ballistic missiles. Importantly, the NGI will serve as the first line of defense under the GMD system.
Notably, the $17 billion contract win comes on the heels of Lockheed securing a $4.1 billion missile defense contract from the U.S. Department of Defense last week. Additionally, the company unveiled its new Mako hypersonic missile last week.
LMT Stock Receives a Major Rating Upgrade
The current global environment of geopolitical tensions and increased defense spending positions companies like Lockheed Martin favorably. Consequently, J.P. Morgan’s Seth Seifman, a five-star analyst on TipRanks, has upgraded his rating on LMT to Buy from Hold. Simultaneously, Seifman raised the price target on LMT to $518 from $475. This rating upgrade comes just before LMT’s first-quarter earnings report on April 23. Analysts expect an EPS of $5.79 on $16.01 billion in revenue for the quarter.
What Is the Target Price for LMT?
Lockheed’s share price has rallied by nearly 26% over the past three years. Overall, the Street has a Hold consensus rating on the stock, alongside an average LMT price target of $478.07.
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