CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
Our 12-month target price of $457, up $17, reflects 16.5x our 2025 EPS estimate, in line with LMT’s historical forward average. We lift our 2024 EPS estimate by $0.21 to $26.29 and 2025’s by $0.57 to $27.72. Q1 EPS of $6.33 vs. $6.43 beat consensus by $0.47. We think supplemental spending, which has passed the House but has yet to pass the Senate, could be additive to overall Department of Defense spending, although probably not by much more than inflation. Q1 sales of $17.2B rose 5% year-over-year on a normalized basis. LMT reaffirmed 2024 revenue guidance in a range of $68.5B to $70.0B and EPS in a range of $25.65 to $26.35. The midpoints imply low-single-digit revenue growth accompanied by some margin compression because EPS is expected to drop about 7%. Backlog fell $2B, to a revised $159B. Despite a jump in sentiment from the Israel-Gaza conflict, we do not see it as a near-term catalyst, but in the longer term, the rise in conflicts could add further to backlogs. Shares yield 2.7%.