UPDATE: Lockheed Martin (LMT) PT Raised to $398 at Credit Suisse After Earnings

July 27, 2021 6:19 AM EDT
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Price: $336.05 -0.71%

Rating Summary:
    17 Buy, 15 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 11 | Down: 8 | New: 46
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(Updated - July 27, 2021 6:46 AM EDT)

Credit Suisse analyst Robert Spingarn raised the price target on Lockheed Martin (NYSE: LMT) to $398.00 (from $394.00) after the company reported Q2'21 sales/EBIT/EPS of $17,029m/$2,192m/$6.52 vs. Street $16,939m/$2,262m/$6.53. The rare EBIT miss was driven by execution issues on a classified program in the Aeronautics segment that resulted in a $225m pre-tax charge ($0.61 impact to EPS). Strong execution in the other segments, as well as favorable below-the-line items, helped mitigate the impact to net income, resulting in EPS that was only a penny shy of Street.

The analyst reiterated a Neutral rating, stating "Consolidated guidance was largely reiterated, with lower Aero profitability offset by raises in the three other segments. Overall, it was a typically solid quarter in 3/4 segments (closer to exceptional at RMS, which posted record margins), but the aero earnings charge distracted from this given its size and rarity. While mgmt’s ability to offer clarity on the aero charge was limited due to the classified nature of the program, the company did note several important items, including that it relates to a development program, that 40% of cost has already occurred, and that the remaining 60% is embedded in the new estimate to complete work."


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