CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We adjust our 12-month target price to $450 from $475, 16.1x our 2024 EPS of $27.94 (reduced from $29.71; 2023 EPS forecast lowered by $0.01 to $27.15). LMT posted Q3 EPS of $6.77 vs. $6.87 (-1% Y/Y), beating consensus by $0.14. The Y/Y decline in EPS was driven by margin contraction across a number of LMT’s businesses, including Aeronautics, Rotary & Mission Systems, and Space. Sales grew 2% Y/Y, beating top-line expectations by about 1% on higher volumes in LMT’s tactical and strike missile programs, and for integrated warfare systems and sensors. Backlogs remain near historically high levels at $156 billion as global order rates remain supportive. LMT delivered 30 F-35s in Q3, leading to a 5% decline in sales within the Aeronautics segment. Despite a jump in sentiment from the Israel-Gaza conflict, we don’t see it moving the needle in the near term and we also don’t see shares trading at an attractive entry point currently (despite trading lower YTD). We keep LMT at a Hold rating.