LMT - Lockheed Martin: War Premium Not Priced In Yet (Upgrade)
2024-04-19 08:30:00 ET
Summary
- Israel has responded with direct strikes in Iran, raising concerns of a more dangerous military confrontation between the two countries.
- LMT recovered from its bottom in mid-February, bolstered by the brewing Middle East conflict.
- The F-35 fighter program should underpin Lockheed Martin's performance.
- LMT's valuation suggests the war premium has yet to be baked into its valuation as investors assess the sustained surge in defense spending.
- LMT has regained its footing, bolstered by worsening conflicts. I explain why it's timely to upgrade LMT's thesis.
Israel Strikes In Iran
Lockheed Martin Corporation ( LMT ) investors must be bracing themselves on whether they could garner a more positive response from the market following Israel's decision to retaliate for last weekend's coordinated strike by Iran. Based on the latest reports, Israel has responded with direct strikes in Iran. At the time of writing, I've not observed any immediate response or rhetoric from the Iranian regime suggesting we could be pushed further into deepening conflict....
Lockheed Martin: War Premium Not Priced In Yet (Upgrade)