Amid rising tensions in the Middle East, JPMorgan has upgraded Lockheed Martin stock following Iran’s drone attack on Israel over the weekend. The bank raised its price target for the defense company to $518 per share, implying a 15% upside from its previous closing price of $450.40 on Friday.
The upgrade comes as geopolitical uncertainty and market volatility increase in light of the Israel-Hamas war in October. JPMorgan analyst Seth Seifman believes that the boosted military preparedness in the region could support Lockheed Martin’s bullish outlook, especially since the defense sector is currently under-owned by institutional investors.
Seifman acknowledged the unpredictability of the situation but highlighted the potential for defense stocks, particularly Lockheed Martin as a bellwether, to perform well in a changing market environment. Despite lagging behind the broader market in 2024, Lockheed Martin’s stock is expected to benefit from current geopolitical circumstances. The company is set to release its first-quarter earnings on April 23, and JPMorgan’s upgrade positions Lockheed Martin favorably in light of recent developments.
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