Cowen Remains Bullish on Lockheed Martin (LMT)

Cowen analyst, Cai von Rumohr, reiterated an Outperform rating and $370.00 price target on Lockheed Martin (NYSE: LMT). Rumohr sees 10% economic EPS gains at least thru 2021, with solid cash flow allowing ~10% dividend hikes.

The F-35 (29% of revenue) has seen sales/margins rise for the last six years and is reaching a point of maturity where outyear visibility is well above-average. Production "plan" calls for build rate to ramp from 110 to 160 in 2023; but LMT has capacity for 180+; and prices, which still are declining, will start to increase by 2022, as the learning curve flattens out and escalation kicks in. On the Q2 call, LMT hiked 2018 sales guide by $1.25B (2.4%) citing $7.5B Congressional LMT add-ons to the FY18 budget, win rates above its normal 65%, and early funding on new awards.

For an analyst ratings summary and ratings history on Lockheed Martin click here. For more ratings news on Lockheed Martin click here.

Shares of Lockheed Martin closed at $315.00 yesterday.

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