Lockheed Martin Corporation (NYSE:LMT) was awarded a $528 million contract in December 2015 by the The Missile Defense Agency for production and delivery of interceptors for the Terminal High Altitude Area Defense (THAAD) system. The new interceptors will support a growing number of U.S. Army THAAD units.
THAAD is a key element of the Ballistic Missile Defense System (BMDS), and is highly effective at protecting America’s military, allied forces, citizen population centers and critical infrastructure from short- to medium-range ballistic missile attacks.
“Our THAAD interceptors are on the cutting edge of missile defense technology. With advanced range, agility and accuracy, our interceptors are fully capable of defeating dangerous missile threats today and into the future,” said Richard McDaniel, Lockheed Martin’s vice president for the THAAD system. “Our focus on affordability, coupled with efficiencies of increased volume, is providing significant cost-savings opportunities to meet growing demand from the U.S. and allies around the globe.”
THAAD interceptors employ Lockheed Martin’s proven “hit-to-kill” technology to destroy missile threats inside and outside the atmosphere. The system is rapidly deployable, mobile, and also interoperable with all other BMDS elements, including Patriot/PAC-3, Aegis, forward-based sensors and the Command, Control, Battle Management and Communications system. These unique capabilities make THAAD an important addition to air and missile defense architectures around the world.
The U.S. Army activated the fifth of seven programmed THAAD batteries at the end of 2015. Lockheed Martin delivered the 100th THAAD interceptor earlier in 2015. The United Arab Emirates was the first international partner to procure the THAAD system with a contract awarded in 2011. (Original Source)
Shares of Lockheed Martin opened today at $214 and are currently trading down at $212.535. LMT has a 1-year high of $227.91 and a 1-year low of $181.91. The stock’s 50-day moving average is $219.15 and its 200-day moving average is $207.10.
On the ratings front, Lockheed Martin has been the subject of a number of recent research reports. In a report issued on December 30, Drexel Hamilton analyst Peter Skibitski maintained a Buy rating on LMT, with a price target of $229, which represents a potential upside of 7.0% from where the stock is currently trading. Separately, on December 21, Deutsche Bank’s Myles Walton maintained a Hold rating on the stock and has a price target of $230.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Peter Skibitski and Myles Walton have a total average return of 12.5% and 7.7% respectively. Skibitski has a success rate of 62.5% and is ranked #737 out of 3648 analysts, while Walton has a success rate of 65.5% and is ranked #267.
The street is mostly Neutral on LMT stock. Out of 4 analysts who cover the stock, 2 suggest a Hold rating , one suggests a Sell and one recommends to Buy the stock. The 12-month average price target assigned to the stock is $223.00, which represents a slight upside potential from current levels.
Lockheed Martin Corp is a security and aerospace company. The Company is engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services.