Lockheed Martin Price Target Revised Ahead of Q2 Results: A Closer Look

Lockheed Martin's price target has been revised to $554 from $579 by Truist analyst Michael Ciarmoli, maintaining a "Buy" recommendation. The analyst believes challenges from tariffs will be manageable for both commercial aerospace and defense segments. Despite a valuation premium for small to mid-cap defense and space companies, global defense spending remains favorable, and the commercial aerospace aftermarket is expected to maintain strength.

Lockheed Martin's (LMT, Financial) stock price target has been revised downward by Truist Securities analyst Michael Ciarmoli. The new target is $554, a decrease from the previous $579, while the "Buy" recommendation remains unchanged [1]. This adjustment reflects the analyst's revised expectations despite maintaining a positive outlook on the company's prospects.

The primary driver behind the price target reduction is the analyst's assessment of potential challenges from tariffs. However, Ciarmoli believes these obstacles will be manageable for both the commercial aerospace and defense segments of Lockheed Martin. The analyst also notes that small to mid-cap defense and space companies are currently enjoying a valuation premium of 122% compared to their larger counterparts, but the global defense spending environment remains favorable [2].

Moreover, the commercial aerospace aftermarket is expected to maintain its strength, which could benefit suppliers involved in original equipment manufacturing, particularly those associated with higher MAX/LEAP production rates. The analyst's outlook is supported by the company's strong financial performance, with a 4% year-over-year increase in sales for Q1 2025, an 11.6% segment operating margin, and a GAAP earnings per share of $7.28, a 14% increase year-over-year [3].

Based on one-year price targets from 18 analysts, the average target price for Lockheed Martin Corp (LMT, Financial) is $530.50, with a high estimate of $670.00 and a low estimate of $408.00. This average target implies an upside of 13.65% from the current price of $466.77. The consensus brokerage recommendation is 2.4, indicating an "Outperform" status [1].

GuruFocus estimates that the fair value for Lockheed Martin Corp (LMT, Financial) in one year is $562.33, suggesting an upside of 20.47% from the current price of $466.77 [1]. This GF Value is calculated based on historical multiples and future estimates of business performance.

Institutional investors have also shown interest in Lockheed Martin, with several large investors adding to or reducing their stakes in the company in recent quarters. However, the stock currently has a "Hold" rating among analysts, with a consensus rating of "Moderate Buy" and an average target price of $533.13 [2].

Lockheed Martin Corporation, a security and aerospace company, engages in the research, design, development, manufacture, integration, and sustainment of technology systems, products, and services worldwide. The company operates through Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space segments.

References:

[1] https://www.gurufocus.com/news/2972339/lockheed-martin-lmt-stock-price-target-lowered-by-truist-securities-lmt-stock-news
[2] https://www.marketbeat.com/instant-alerts/lockheed-martin-nyselmt-given-hold-rating-at-td-cowen-2025-07-10/
[3] https://www.gurufocus.com/news/2971953/lockheed-martin-lmt-price-target-revised-ahead-of-q2-results-lmt-stock-news