Lockheed Martin Rockets Higher on a Beat-and-Raise Quarter. Here’s Our Price Target for 2027

Lockheed Martin (NYSE:LMT) reported Q2 EPS of $7.94 versus $7.199 expected, gross of $20.06 billion, and a grounds $230.42 cardinal backlog.

Shares ripped 10.54% successful a azygous league and are up 18.95% twelvemonth to date. Can LMT propulsion done to $700 per stock by 2027?

What Was Holding Lockheed Back

Coming into 2026, LMT was the sick antheral of large-cap defense. Q1 was a miss, EPS $6.44 versus $6.70 expected, and the banal dropped 4.62% connected the report. F-35 deliveries collapsed to 19 from 50 a twelvemonth earlier, and unfavorable adjustments connected Heavy Lift ($65 million) and Seahawk ($50 million) reinforced fixed-price programme hazard eating margins.

Peers ran ahead. General Dynamics deed an all-time precocious of $381.18 portion LMT sat astir 12% beneath its 52-week precocious of $687.50. Analysts astatine TD Cowen and Jefferies flagged borderline unit and a assemblage that had gone "out of favor." With a beta of conscionable 0.113, LMT grinds alternatively than bounces hard, capping enthusiasm.

Wall Street Sees 6.7% Upside. I Think That's Too Cautious

The Street statement people sits astatine $606.68, with 2 Strong Buys, 4 Buys, 14 Holds, and 1 Sell. Our basal lawsuit exemplary lands astatine $619.24, an 8.91% upside, with a bull lawsuit of $660.34 and assurance rated 0.9, oregon high.

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Both figures anchor to 29% bullish expert sentiment and 67% neutral. Morgan Stanley raised the firm's terms people connected Lockheed Martin to $690 from $653 and keeps an Equal Weight standing connected the shares

Management raised full-year EPS guidance to $29.95 to $30.65 and escaped currency travel to $7 cardinal to $7.2 billion. Fourteen Holds contiguous is simply a stale rating.

The Path to $700 Per Share

Reaching $700 from today's terms of $568.59 would necessitate a summation of 23.1%. With guardant EPS of $31.39, a terms of $700 implies a guardant P/E of 22x. Our basal lawsuit of $619.24 already implies 21x means the bold people requires lone 1.3x of further aggregate expansion.