01:37 PM EDT, 08/21/2025 (MT Newswires) -- Lockheed Martin ( LMT ) rattled investors after reporting $1.8 billion in Q2 charges tied to a classified aeronautics program and two rotary and mission systems projects, BofA Securities said Thursday in a report.

"Investors have been spooked by the seemingly continuous charges on legacy programs," BofA said. "The company will be in the penalty box in the near term."

Lockheed may face a $4.6 billion tax-related charge from the IRS, compounding risks and constraining near-term momentum, the report said.

Following the Q2 charges, BofA slashed its 2025 adjusted earnings estimate to $21.95 a share from $27.30, citing limited near-term growth catalysts.

The company's missiles and fire control segment is "the principal driver of upside in the near-term" with systems that "remain critical to US and allied military capabilities," the report said. Still, supply chain constraints limit the segment's prospects to counter weakness elsewhere, BofA said.

BofA cut its price target on Lockheed stock to $480 from $495 and maintained its neutral rating.

Lockheed stock rose 0.4% in recent Thursday trading.

Price: 447.96, Change: +1.96, Percent Change: +0.44