Why UBS Just Turned Bullish on Lockheed Martin (LMT) Stock
TLDR
- UBS upgraded LMT from Neutral to Buy, raising its price target to $674 from $581
- Analysts project 9% revenue CAGR through 2028, driven by missiles, F-35 sustainment, CH-53K, and Trident programs
- UBS forecasts 150% revenue growth in the missiles and fire control segment from 2025 to 2030
- LMT trades at a 15% discount to the S&P 500, which UBS sees as unjustified given the growth outlook
- UBS 2028 EPS estimate of $39.34 sits 12% above Wall Street consensus
Lockheed Martin (LMT) got a boost Tuesday after UBS upgraded the stock to Buy from Neutral and lifted its price target to $674 from $581. The stock was trading around $525 at the time of the upgrade.
Lockheed Martin Corporation, LMT
UBS analyst Gavin Parsons laid out a growth case built on accelerating missile production, rising defense budgets, and revenue streams beyond the F-35. The bank projects revenue growing at a compound annual rate of roughly 9% through 2028.
The missiles and fire control division is the core of that thesis. UBS sees revenue from that business rising 150% between 2025 and 2030, with production volumes across four major missile families growing at more than 30% per year before settling into a slower, sustained rate.
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