Susquehanna Sees Commercial and Defense Trends Supporting Lockheed Martin Corporation (LMT)

Core Viewpoint - Lockheed Martin Corporation (NYSE:LMT) is experiencing favorable conditions in both commercial and defense sectors, leading to increased price targets and production capabilities [2][3]. Group 1: Financial Performance and Projections - Susquehanna raised its price target for Lockheed Martin from $590 to $660, maintaining a Positive rating on the shares, reflecting confidence in the company's performance [2]. - The aerospace and defense industry is showing strong trends, with steady defense spending and healthy aftermarket demand, prompting higher valuation targets across the sector [3]. Group 2: Production and Delivery Achievements - Lockheed Martin set a new annual record by delivering 191 F-35 fighter jets in 2025, significantly increasing production rates, which are now five times faster than any other allied fighter in production [4]. - The F-35 program is a major profit driver for Lockheed, accounting for approximately one-third of total revenue, with consistent demand due to rising defense budgets amid geopolitical tensions [4]. Group 3: Strategic Agreements and Capacity Expansion - Lockheed Martin signed a seven-year agreement with the U.S. Department of War to increase annual production capacity of PAC-3 missile interceptors to 2,000 units from around 600, reflecting growing interest in air defense systems [5].