UBS upgraded Lockheed Martin from neutral to buy and set a price target of $674, implying a potential 28% gain from Friday’s close. Analyst Gavin Parsons forecasts a 9% annual revenue growth rate through 2028, driven by missiles, munitions, F-35 sustainment and CH-53K helicopters, which could translate into double-digit upside to consensus earnings per share estimates. The stock currently trades at a 15% discount to the S&P 500, a discount that does not reflect, according to UBS, the expected growth in free cash flow, estimated to rise by 38% between 2025 and 2030. In 2026, Lockheed shares are up only 8%, after hitting a peak near +40% in early March before retreating 22%. Among the 24 analysts covering the stock, 13 recommend hold, 10 recommend buy and one rates it underperform.
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