Lockheed Martin Corporation (LMT) announced that it has selected manufacturing sites in Mobile, Alabama, and Marietta, Georgia, to build its LMXT strategic tanker aircraft. Shares closed down 1% at $389.13 on January 31.
LMT is an American aerospace, arms, defense, information security, and technology corporation with a global reach, and is also one of the largest companies in the space. Year-to-date, its shares have gained 9.8%.
Alabama and Georgia Manufacturing Sites
Lockheed Martin has partnered with France’s aircraft manufacturer Airbus SE to manufacture the tanker jets. The LMXT was launched in September 2021 for the U.S. Air Force’s KC-Y “Bridge Tanker” Program competition.
The tanker jet will be built in two phases. First, LMT will use Airbus’ A330 airliner as the base for the tanker. These will be built at Airbus’ current facility in Mobile, Alabama. The facility has over 15,000 employees who currently build Airbus commercial jets A320 and A220.
In the second phase, the A330 airliners will be converted into the LMXT tankers at LMT Aeronautics’ Marietta, Georgia, facility. The plant currently has 5,000 employees and houses the C-130J Super Hercules final production and F-35 Lightning II center wing assembly lines.
Company Comments
Chairman, President and CEO of LMT, James Taiclet, said, “The LMXT will strengthen global security by enabling our U.S. service members to carry out their most critical missions at extended ranges. At home, the LMXT will strengthen job growth and manufacturing by drawing on the experience and talents of a high-tech American workforce in two states that are proven leaders in aviation.”
Meanwhile, chairman and CEO of Airbus Americas, C. Jeffrey Knittel, said, “Our U.S. workforce, which is more than 35% military veterans, is eager to see an Air Force tanker join the fleet of Airbus aircraft flying for the U.S. Army, National Guard, Navy, and Coast Guard.”
Target Price
The LMT stock has a Moderate Buy consensus rating based on 5 Buys and 8 Holds. The average Lockheed Martin target price of $411.23 implies 5.7% upside potential to current levels.
Blogger Opinions
TipRanks data shows that financial blogger opinions are 97% Bullish on LMT, compared to a sector average of 69%.
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