Morgan Stanley Upgrades Lockheed Martin After Strong Q3 Results
Morgan Stanley upgraded Lockheed Martin to Overweight and raised its price target to $835 following a 10-year F-35 production agreement and strong quarterly earnings.
Lockheed Martin reported third-quarter 2026 results that exceeded Wall Street expectations, posting revenue of $20.7 billion—an 11% increase from the previous year—and earnings per share of $7.97. The company saw particularly strong growth in its Missiles and Fire Control segment, where sales rose 24% year-over-year, prompting the defense contractor to raise its full-year outlook.
Following these results and the securing of a 10-year agreement for F-35 aircraft production, Morgan Stanley upgraded the company's stock rating to Overweight and increased its price target to $835 from $690. The production agreement maintains a rate of 156 planes per year, which analysts indicate provides better supply chain visibility and reduces downside risk.
Other financial institutions also adjusted their valuations in response to the company's performance. BofA Securities increased its price target to $620, UBS lifted its target to $692, and RBC Capital raised its target to $600.
