Wall Street Cautious on Lockheed Martin Corporation (LMT) with a Potential Downside

Lockheed Martin Corporation (NYSE:LMT) is among the 10 Best Defense Stocks to Buy in the S&P 500. On January 15, UBS lifted its price target on the stock to $580 from $513, while keeping a Neutral rating.

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This follows Jefferies’ update on the stock on January 12, when the firm raised its price target to $540 from $500, while maintaining a Hold rating. The analyst noted that despite share price appreciation drivers, the stock underperformed last year due to investor concerns over margin risk.

Jefferies further added that it anticipates Lockheed Martin Corporation (NYSE:LMT)’s fourth-quarter top-line figure to largely fall in line with expectations, while adding that the guidance for revenue and EPS in 2026 could disappoint investors.

The stock is a consensus Hold with a one-year average share price target of $559.23, representing a downside of about 4% as of the close on January 19.

In other news, on January 6, the defense contractor announced it had reached a seven-year agreement with the Department of War (DoW) to enhance the annual output capacity of its PAC-3 Missile Segment Enhancement (MSE) interceptors to 2,000 units from approximately 600.

The company’s press release said an initial contract with the U.S. government was anticipated upon the final FY26 Congressional appropriations.

Lockheed Martin Corporation (NYSE:LMT) is one of the world’s largest defense contractors. It specializes in the research, design, and development of advanced technology systems, products, and services.

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Disclosure: None.