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Lockheed Martin Stock Jumps 5% After Morgan Stanley Upgrade
Why is Lockheed Martin stock up today?
Lockheed Martin (LMT) stock rose about 5% on Monday from Friday's $604.18 close after Morgan Stanley upgraded it to Overweight, citing a 10-year deal for 850 F-35 jets and a strong quarter.
Key numbers
| Monday stock move | ~5%Yahoo cited ~7% at points |
|---|---|
| Morgan Stanley price target | $835+21% from $690 |
| F-35 jets planned (10 years) | 850156 per year |
| Q3 sales | $20.7B+11% YoY |
| Q3 earnings per share | $7.97+15% YoY |
| Record backlog (future work) | $292.0Brecord high |
What happened
Lockheed Martin (LMT) stock rose about 5% on Monday from Friday's $604.18 close after Morgan Stanley upgraded it to Overweight, citing a 10-year deal for 850 F-35 jets and a strong quarter. The bank also raised its price target (where it thinks the stock could go) to $835 from $690. The US government and Lockheed unveiled the 10-year plan on October 22, though Congress must still approve the funding. Third-quarter sales hit $20.7 billion, up from $18.6 billion a year earlier, and earnings of $7.97 per share beat the $7.52 analysts expected.
Why it matters
Lockheed Martin matters to investors because the F-35 jet makes up 20% to 30% of its sales, and many feared the program could be cut to pay for more missiles. The 10-year plan eases that worry and keeps production steady at 156 jets a year. It is not final, because Congress must still approve the money, so details could change.
Who this affects
- MarketbullishMedium impact
- Defense-stock investors get a clearer view of US spending.
- CompanybullishHigh impact
- Shareholders gain from steadier F-35 sales and a higher target.
- CompetitorsneutralLow impact
- Rivals Northrop and RTX also reported record backlogs.
- IndustrybullishMedium impact
- Suppliers get a decade of clearer F-35 demand.
Lockheed Martin vs Northrop Grumman, RTX
How we got here
Lockheed reports Q3 results and announces 10-year, 850-jet F-35 framework with the Pentagon.
Lockheed shares close at $604.18 on Friday.
Morgan Stanley upgrades Lockheed to Overweight and lifts its price target to $835.
What to watch
- Congress approving multiyear F-35 funding, then final contract terms, pricing and delivery schedules.Q4 2026
- Lot 20 F-35 costs now exceeding funding; extra US funding needed to avoid hurting results.Q4 2026
Educational content only. Not investment advice.
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