This favourite Congress defence stock just received 2 major Wall Street downgrades

Core Viewpoint - Lockheed Martin (LMT) has faced significant downgrades from analysts, reflecting concerns over its earnings quality, competitive losses, and reduced growth expectations, amidst increasing capital outflows and a bearish stock sentiment [1][6][7]. Analyst Downgrades - Bank of America downgraded LMT from 'Buy' to 'Neutral', lowering the price target from $685 to$485, citing concerns over earnings quality and loss of key programs [6][7]. - Melius Research also downgraded LMT from 'Buy' to 'Hold', cutting the price target from $603 to$483, driven by competitive losses and concerns over reduced reliance on U.S. defense contractors in Europe [8][9]. Stock Performance - As of the latest report, LMT stock was down over 2%, trading at $429.70, with a year-to-date decline exceeding 10$461.43 and 200-day simple moving average of $512.87, indicating a bearish sentiment [4]. Competitive Landscape - Despite winning an$18 billion contract for the Next-Generation Interceptor missile defense, LMT has faced recent contract losses to competitors such as Northrop Grumman, Raytheon, and Textron, signaling headwinds for future growth [10]. - The loss of the Next Generation Air Dominance contract to Boeing, a $20 billion program, has contributed to recent volatility in LMT's stock [11][12]. Positive Outlook from Some Analysts - Truist Securities maintained a 'Buy' rating with a price target of$579, highlighting LMT's strong fundamentals and long-term growth potential despite recent challenges [11]. - Analyst Michael Ciarmoli noted that while the loss of the NGAD contract could have generated significant revenue, LMT's dominance in the aerospace and defense sector remains supported by its F-35 program and other defense contracts [12].