Connect with us

Hi, what are you looking for?


Wells Fargo downgrades Lockheed Martin despite the Ukraine war

Lockheed Martin Corporation (NYSE: LMT) is up 13% versus the start of 2022 but a Wells Fargo analyst says it’s pretty much as far as it goes.

Lockheed Martin is fairly priced

On Wednesday, Matthew Akers downgraded the defense company to “underweight” and announced a price objective of $415 that does not represent a meaningful upside from here.

He warned of a difficult environment for this stock next year if the geopolitical tensions ease and the government spending slows down. The analyst does not see Lockheed Martin as a great pick for the coming recession either.

Defense stocks as a hedge for market downturns [don’t have a good] track record. During 10%+ market corrections in past 20 years, defense has modestly outperformed on average (~4%), although underperformed over 50% of the time.

The current price-to-earnings multiple on “LMT” is well above its previous five-year average.  

Lockheed Martin missed estimates in fiscal Q2

Even with the war in Ukraine, Lockheed Martin came in shy of the Street estimates in its latest reported quarter. Akers added:

We see a portfolio likely to under-grow peers, particularly if it doesn’t win the Future Vertical Lift FLRAA contract where it is incumbent on Black Hawk (expected in October).

Wells Fargo also downgraded peer L3Harris Technologies Inc (NYSE: LHX) to “equal-weight” on Wednesday. Its price target of $238, however, still translates to about a 10% upside from here.

The defense stock is currently trading at the same price at which it started the year 2022.

The post Wells Fargo downgrades Lockheed Martin despite the Ukraine war appeared first on Invezz.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like


    Solana (SOL/USD) is enormously underrated as a cryptocurrency project, even with its hiccups – including the latest exploit on one of the ecosystem apps....

    Editor's Pick

    The new eSIM infrastructure will help modernise the IoT connectivity market with fast, secure connections and reduced vendor lock-in. 1oT, a tech startup from...


    The latest Job Openings and Labor Turnover Survey from the Bureau of Labor Statistics shows the total number of job openings in the economy...


    U.S. District Court Judge Reed O’Connor recently ruled to uphold the rights of employers granted in the Religious Freedom Restoration Act, rather than uphold...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2023