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 $440, cut $10, reflects 16.2x our 2025 EPS, in line with LMT’s long-term forward average. We trim our 2024 EPS estimate by $1.86 to $26.08 and start 2025’s at $27.15. LMT posted Q4 EPS of $7.90 vs. $7.79, beating consensus by $0.65. Revenues fell 1% year-over-year, as did segment operating profits, with modest revenue declines in Aeronautics, Rotary & Mission Systems, and Missiles & Fire Control, partly offset by higher revenues in Space. LMT sees 2024 revenues in a range of $68.5B to $70.0B and guided for EPS in a range of $25.65 to $26.35. The midpoint of the respective ranges implies low-single-digit revenue growth accompanied by some margin compression because EPS is expected to drop about 7%. Backlog rose $5B, to a revised $161B. 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 2.9%.