Lockheed Martin Gears Up For Q4 Print; Here Are The Recent Forecast Changes From Wall Street's Most Accurate Analysts

As we approach the end of the year, Lockheed Martin (LMT) is gearing up for its Q4 print, with analysts from Wall Street's most accurate firms revising their price targets and ratings. Let's dive into the recent forecast changes and what they mean for the defense giant.

Analyst Ratings and Price Targets

Lockheed Martin currently has 22 analysts with a "Buy" rating, 6 with an "Upgrade," 7 with a "Downgrade," 5 with an "Initiation," and 12 with a "Hold" rating. The average price target is $541.86, with a high of $635.00 and a low of $405.00. These ratings and price targets reflect a generally bullish sentiment among analysts, with a few expressing caution.

Recent Forecast Changes

1. Citigroup analyst Jason Gursky maintained a Buy rating but cut the price target from $700 to $600 on Jan. 21, 2025. This revision reflects a more conservative outlook on the company's earnings performance.
2. JP Morgan analyst Seth Seifman maintained an Overweight rating but slashed the price target from $546 to $540 on Jan. 16, 2025. This analyst has an accuracy rate of 82%.
3. Truist Securities analyst Michael Ciarmoli initiated coverage on the stock with a Buy rating and a price target of $579 on Jan. 14, 2025. This analyst has an accuracy rate of 82%.
4. Wells Fargo analyst Matthew Akers maintained an Equal-Weight rating but cut the price target from $543 to $500 on Jan. 8, 2025. This analyst has an accuracy rate of 71%.
5. Deutsche Bank analyst Scott Deuschle downgraded the stock from Buy to Hold and lowered the price target from $611 to $523 on Jan. 2, 2025. This analyst has an accuracy rate of 75%.



Key Factors Influencing Analyst Revisions

Several key factors have influenced the analysts' revisions in their price targets for Lockheed Martin:

1. Earnings Reports and Guidance: Analysts often revise their price targets based on the company's earnings reports and guidance. For instance, Citigroup analyst Jason Gursky cut his price target from $700 to $600 after Lockheed Martin's earnings report in January 2025.
2. Business Performance and Contract Wins: Analysts may revise their price targets based on the company's business performance and contract wins. For example, Lockheed Martin's contract for the integration of next-generation infrared defensive sensors on the F-22 Raptor in January 2025 might have influenced some analysts to raise their price targets.
3. Market Conditions and Sector Performance: Analysts may also consider broader market conditions and sector performance when revising their price targets. For instance, the steadily growing commercial air passenger traffic has been boosting the quarterly performance of defense stocks operating in the aviation industry, which might have influenced analysts to raise their price targets for these stocks.
4. Inflation and Supply Chain Challenges: Lingering factors like inflation, supply chain challenges, and labor shortages can impact a company's performance and may lead analysts to revise their price targets. For example, the International Association of Machinists and Aerospace workers' strike, which ended in November 2024, might have adversely impacted the overall fourth-quarter performance of defense stocks, leading analysts to lower their price targets.

Conclusion

As we approach the end of the year, Lockheed Martin is gearing up for its Q4 print, with analysts from Wall Street's most accurate firms revising their price targets and ratings. While some analysts have raised their price targets, indicating optimism, others have lowered their targets, suggesting caution. The recent forecast changes reflect a mixed sentiment towards Lockheed Martin's Q4 earnings performance, with analysts considering various factors such as earnings reports, business performance, market conditions, and supply chain challenges. Investors should closely monitor these developments and consider the insights of these analysts when making investment decisions.