Lockheed Martin downgraded to Hold from Buy at Deutsche Bank

Deutsche Bank downgraded Lockheed Martin (LMT) to Hold from Buy with a price target of $523, down from $611. The firm says its lost conviction in its original upgrade thesis from July, and struggles to find new reasons to remain constructive on the shares. Lockheed’s Q3 results failed to fulfill the upside case and disappointed on revenue, the analyst tells investors in a research note. Deutsche also views the reveal of further advancements in combat aircraft capabilities by China as potentially undermining long-term Department of Defense demand for the F-35 aircraft. It no longer sees potential for meaningful positive estimate revisions and finds the stock “difficult to defend.”