Truist Trims Lockheed Target but Reaffirms Buy on Defense Strength and Valuation Appeal

Lockheed Martin (NYSE: LMT) is one of the best space stocks to buy according to hedge funds. On July 11, 2025, Truist analyst Michael Ciarmoli reaffirmed his Buy rating on Lockheed Martin but trimmed the 12-month price target from $579 to $554.

This ~4.3% reduction isn’t a red flag; it reflects nuanced adjustments, not a shift in fundamental confidence. Ciarmoli highlights manageable tariff challenges in both commercial aerospace and defense, supported by a backdrop of robust global defense budgets and strong aftermarket demand.

Truist Trims Lockheed Target but Reaffirms Buy on Defense Strength and Valuation Appeal

He also notes Lockheed’s valuation remains attractive: small- and mid-cap defense and space peers trade at a roughly 122% premium to large-caps. Despite the price-target cut, Truist sticks with Buy, signaling belief in the company’s resilience amid macro uncertainties.

Lockheed Martin is a global aerospace and defense giant, designing and producing iconic systems, from F-35 and F-22 fighter jets to advanced missile systems, satellites, and spacecraft, serving U.S. and international military, intelligence, space, and security clients.

While we acknowledge the potential of LMT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LMT and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.