Why Lockheed Martin Stock Keeps Going Up

LMT jumped 3.3% after three Wall Street analysts published bullish notes, led by a Morgan Stanley upgrade to 'overweight' with an $835 price target.

Morgan Stanley's call centers on two points: a 10-year F-35 production contract and strong missile sales. The $835 target is the highest of the three, and the upgrade is the only rating change in the group.

Bank of America lifted its price target on LMT to $620 but kept a neutral rating. JP Morgan raised its target to $665, also holding neutral. Interpretation: the gap between Morgan Stanley's $835 and the $620-$665 range from the two neutral-rated firms shows real disagreement on how much upside the F-35 contract and missile demand justify. Even the cautious shops moved their targets higher, which suggests the contract news shifted estimates across the board, though conviction varies.

The risk flagged in the coverage is margin compression. Increased F-35 production at bulk rates could weigh on profitability even as volume rises. Interpretation: the bull case rests on revenue visibility from the 10-year contract, while the bear case rests on whether bulk pricing erodes the earnings benefit of that volume.