Seaport Global lifts LMT price target, citing 29% upside as defense demand surges despite recent underperformance.
Lockheed Martin’s stock received a $756 price target from Seaport Global’s Richard Safran, implying 29% upside from its current $586.29 close. The revision follows a Q2 earnings beat and a record $230 billion backlog, driven by global rearmament and Pentagon demand for missile-defense systems and aircraft like the F-35 and Sikorsky helicopters.
The company’s Q1 2026 miss weighed on sentiment, with EPS of $6.44 missing $6.70 estimates and free cash flow turning negative at -$291 million. Operating cash flow also dropped sharply from $1.41 billion to $220 million. Despite this, full-year guidance was raised, and the backlog expanded, contrasting with the stock’s 8% decline over six months.
Wall Street’s average price target stands at $628.21, reflecting modest 7% upside. Defense peers like Northrop Grumman show 17% consensus upside, while RTX gained 11% in the same period. The FY 2027 budget request and multi-year contracts are expected to sustain demand.