Why Lockheed Martin Stock Keeps Going Up

UBS analyst Gavin Parsons upgraded Lockheed Martin (LMT) to "buy" with a $674 price target, implying 26% upside from current levels.

The call rests on the Missiles and Fire Control division. Parsons expects it to grow 20% annually through 2030, with PAC-3 Patriot, THAAD, and JASSM/LRASM missile sales adding billions in revenue.

The margin math is the core of the thesis. Missiles and Fire Control earns a 13% margin, versus 10.7% for the company overall. As the higher-margin division becomes a bigger share of sales, the mix shift lifts consolidated profitability. Interpretation: that dynamic could push profit growth above the 17% Wall Street currently projects, since consensus may not fully reflect the divisional mix effect.

Valuation adds to the appeal. LMT trades at under 20x earnings, so the upgrade argues for upside without requiring a multiple expansion. If Parsons' growth path holds, earnings growth alone would do much of the work toward $674.