Lockheed Martin(US:LMT) Yahoo Finance·2026-01-09 17:27Core Viewpoint - Lockheed Martin's stock has been upgraded to a buy by Truist Securities, with a price target of $605, indicating a potential 12% profit over the next year along with a dividend yield of nearly 2.7% [1][3]. Group 1: Stock Performance and Analyst Upgrade - Lockheed Martin stock rose 4.2% after the upgrade by analyst Michael Ciarmoli [1]. - The upgrade is attributed to the company's attractive valuation and the expectation of improved performance due to recent contract wins and geopolitical tensions [3]. Group 2: Market Context and Future Outlook - President Trump's call for a $1.5 trillion defense budget for fiscal 2027 has positively influenced Lockheed's stock [3]. - The securing of a significant contract for Patriot air defense missiles is expected to enhance performance in Lockheed's missiles and fire control business [3]. Group 3: Valuation Considerations - Lockheed Martin's stock is priced at 1.6 times trailing sales and 28.5 times earnings, resulting in a PEG ratio of 2.4 at forecast growth rates below 12% [5]. - Despite the positive outlook, the current valuation may pose risks for potential investors [5].