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Baird said it's time for investors to consider putting their money in Lockheed Martin , a "pure-play" defense stock with limited downside risk. Analyst Peter Arment upgraded shares of the defense contractor to outperform, saying in a note to clients that F-35 fighter jet contract negotiation delays from the first half of the year are largely in the "rearview mirror." "We are upgrading LMT to Outperform reflecting our view that headline risks have been reduced tied to the multi-year FCF outlook and 2023 guidance met Street expectations, leaving little for bears to point along with LMT's valuation providing value plus visibility vs. other mega-cap industrials," he wrote. Lockheed Martin's latest quarterly figures topped analyst, due in part to higher sales of its F-35 accounting for roughly 70% of its aeronautics revenue and 28% of total company sales. The company also adopted a $14 billion share buyback program which included a $4 billion accelerated share repurchase in the fourth quarter and reaffirmed its 2022 guidance Arment retained the firm's $513 price target on the stock — 18% above Tuesday's close — but trimmed 2022 and 2023 earnings per share estimates to reflect a weaker top line. "With robust cash generation still intact, coupled with buyback momentum in a highly volatile equity market, the downside in the LMT stock from current levels is likely limited," he wrote. — CNBC's Michael Bloom contributed reporting
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October 19, 2022 at 06:57PM
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Baird says buy Lockheed Martin, a 'pure-play' defense stock with limited downside risk - CNBC
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