Jefferies Cuts Lockheed Martin Price Target to $575, Maintains Hold

Jefferies analysts lowered their price target on Lockheed Martin Corporation (NYSE:LMT) to $575 from $595, while reiterating a Hold rating on the stock. The revision comes ahead of the company's second-quarter earnings report.

Rating Change

• Previous Price Target: $595
• New Price Target: $575
• Rating: Hold

Analyst Rationale

Jefferies expects Lockheed Martin's second-quarter revenue growth to accelerate to 5% year-over-year. However, the firm trimmed its earnings-per-share (EPS) estimate for the quarter, citing higher costs and margin pressures. Specific details on the EPS revision were not disclosed.

Context

Lockheed Martin faces ongoing supply chain challenges and rising material costs, which are squeezing profit margins. Despite these headwinds, the stock remains a favorite among dividend-focused investors; it was recently included in billionaire Steven Cohen's list of top 11 dividend stock picks.

What to Make of It

The price target cut reflects increased caution on Lockheed Martin's near-term performance. Investors should monitor the upcoming Q2 earnings release to assess whether the company meets, beats, or misses Jefferies' revised expectations.