UPDATE: Lockheed Martin (LMT) PT Raised to $450 at Morgan Stanley, Supply Issues Appear to be Behind the Company

(Updated - January 26, 2022 7:49 AM EST)

Morgan Stanley analyst Kristine Liwag raised the price target on Lockheed Martin (NYSE: LMT) to $450.00 (from $430.00) after 4Q21 results showed a positive inflection after a rocky 3Q.

The analyst believes that this clean print and positive outlook suggest that supply chain woes may be behind the company and reiterated an Overweight rating, stating "While LMT continues to work to shore up its supply chain, including embedding LMT personnel with vulnerable suppliers, it appears as though the worst COVID induced disruptions are behind the company. We see relatively less vulnerability for LMT from the government’s ongoing Continuing Resolution (CR), though may see more impact if the CR is extended through the full fiscal year. We are encouraged that LMT has largely insulated itself from inflationary pressures given its use of fixed-price contracts with its supplier base and by company efforts to factor in pricing increases in its negotiations for F-35 Lots 15 and 16. We also see the company’s planned $4bn in buybacks in 2022 as providing a strong floor for the stock."

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