JP Morgan Downgrades Lockheed Martin Corporation (LMT) Citing Cash Flow Concerns

Core Viewpoint - Lockheed Martin Corporation (NYSE:LMT) has been downgraded by JP Morgan and Morgan Stanley due to concerns over long-term cash flow estimates and pension-related outflows, despite a bullish outlook for the aerospace and defense sector through 2026 [2][3]. Group 1: Downgrades and Price Targets - JP Morgan downgraded Lockheed Martin's rating to Neutral from Overweight, citing that anticipated pension-related outflows next year could limit cash flow growth, making the expected 8% growth seem optimistic [2]. - Morgan Stanley also downgraded Lockheed Martin to Equal Weight from Overweight and reduced its price target from $630 to $543 as part of a broader sector outlook for 2026 [3]. - JP Morgan raised its price target for Lockheed Martin from $465 to $515, reflecting a positive outlook despite the downgrade [2]. Group 2: Analyst Consensus and Market Position - As of December 22, Wall Street analysts have a consensus Hold rating for Lockheed Martin, with a one-year average share price target of $524.93, indicating a potential upside of 9% [4]. - Lockheed Martin is recognized as one of the largest defense contractors globally, known for manufacturing significant military aircraft such as the F-35 [4].