The U.S. Army and U.S. Navy awarded Lockheed Martin Corporation (NYSE:LMT) a $66.3 million contract for the Engineering and Manufacturing Development (EMD) phase of the Joint Air-to-Ground Missile (JAGM) program.

“Since contract award in August, we conducted a fifth flight test that further demonstrated the high degree of design maturity and readiness for operational testing that will support future JAGM production,” said U.S. Army Project Manager Col. James Romero. “The Aug. 25 test was the first JAGM test using the Active Fire and Forget, Lock-On After Launch engagement mode against a stationary armored target. Throughout all five tests, we have demonstrated that both sensors – onboard radar and semi-active laser – effectively operate together to provide an enhanced capability against stationary and moving targets for precision point or fire-and-forget targeting.”

The 24-month EMD phase will include JAGM production, test qualification and integration on the AH-64 Apache and AH-1Z Cobra attack helicopters. The EMD phase also establishes an initial low-rate manufacturing capability in support of two follow-on low-rate initial production options.

“The EMD contract validates the merits of our mature, modular and proven JAGM design,” said Frank St. John, vice president of tactical missiles and combat maneuver systems at Lockheed Martin Missiles and Fire Control. “We will continue to work closely with the Army and Navy as we move through the EMD phase and into low-rate initial production, ensuring we meet Initial Operational Capability in 2018 on budget and on schedule.”

Prior to EMD contract award, Lockheed Martin completed the Army’s Continued Technology Development (CTD) phase, which included design, test and demonstration of the JAGM guidance section. During CTD flight testing, Lockheed Martin’s JAGM achieved 100 percent mission success. (Original Source)

Shares of Lockheed Martin opened today at $203.54 and are currently trading down at $201.89. LMT has a 1-year high of $213.34 and a 1-year low of $166.28. The stock’s 50-day moving average is $204.43 and its 200-day moving average is $195.63.

On the ratings front, Lockheed Martin has been the subject of a number of recent research reports. In a report issued on August 20, Sterne Agee CRT analyst Peter Arment upgraded LMT to Buy, with a price target of $252, which implies an upside of 23.8% from current levels. Separately, on August 19, Citigroup’s Timothy Thein maintained a Buy rating on the stock and has a price target of $232.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Peter Arment and Timothy Thein have a total average return of 9.7% and 1.8% respectively. Arment has a success rate of 60.7% and is ranked #570 out of 3747 analysts, while Thein has a success rate of 50.0% and is ranked #2104.

Overall, 3 research analysts have assigned a Hold rating and 3 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $224.40 which is 10.2% above where the stock opened today.

Lockheed Martin Corp is a security and aerospace company. The Company isengaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services.