Texas-based defense giant Lockheed Martin (LMT) has been awarded a $4.7 billion contract modification, according to a statement released by the US Department of Defense on March 31.
This modification is for the procurement of 78 F-35 combat aircraft (48 F-35A combat aircraft for the Air Force, 14 F-35B combat aircraft for the Marine Corps, 16 F-35C fighter aircraft for the Navy) and associated aircraft red gear. The statement adds that the majority of the work will be carried out in Fort Worth Texas, and work is expected to be complete by March 2023.
In the last five days, shares in LMT have surged 17% to $339. TipRanks reveals that the Street sees further upside ahead- with an average analyst price target of $452 indicating 33% upside potential. Analysts have a consensus of Moderate Buy on LMT stock with 9 buy ratings vs 5 hold ratings. This includes a recent ratings upgrade from hold to buy by DZ Bank AG’s Robert Czerwensky. (See LMT stock analysis on TipRanks)
On March 27, Lockheed Martin CEO Marillyn Hewson set out a raft of measures to assist with Covid-19 relief and recovery efforts. These include a $10 million charity donation, a $6.5 million employee relief fund and a $50 million advance to small- and medium-sized business partners to ensure their continued operation.