UBS analyst Gavin Parsons upgraded Lockheed Martin (NYSE: LMT) from Neutral to Buy with a price target of $674.00 (from $581.00).

The analyst comments: “We upgrade LMT to Buy from Neutral, with 26% upside to our 12mo $674 price target (prior $581). Growth in missiles/munitions - and others like F-35 sustainment, CH-53K, and Trident - drive a 9% revenue CAGR through 2028; this is above consensus and does not appear priced in given the 15% discount vs. S&P500. We see double digit EPS upside to consensus in 2028. We believe FY27 budget concerns are overdone, and with awards flowing plus significant outlay catch-up (+17% in July, +36% remaining to FY26 budget), we see material upside to the stock.

While strong missiles/munitions growth is well socialized amongst investors, we view the potential for faster, higher, and more sustainable production as neither priced in nor modeled by consensus. Multi-year production frameworks inform our LMT MFC revenue build, with 150% revenue growth 2025-2030E. The Pentagon is also pushing the supply chain to ramp even faster. We view the framework targets as sustainable production levels, even with some upside, reflecting structurally changed views on inventory stockpile requirements plus international demand.”

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Shares of Lockheed Martin closed at $525.28 yesterday.