Lockheed Martin price target lowered to $508 from $527 at UBS

UBS lowered the firm’s price target on Lockheed Martin (LMT) to $508 from $527 and keeps a Neutral rating on the shares. Strong bookings and international exposure support visible multiyear growth even if budgets should slow, and 2025 guidance for 4%-5% organic growth is an upgrade from just one quarter ago and has further upside risk given 2024 was Lockheed’s third consecutive year with a book to bill of 1.2X, the analyst tells investors in a research note. Defense stocks have come under increasing pressure as budget trajectory, DOGE efficiency, and potential contracting changes introduce uncertainty into the narrative, the firm says. UBS sees “limited” free cash flow growth due to transitory factors like pension, offsetting operating earnings growth drop-through.