03:05 PM EDT, 07/23/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We decrease our 12-month target price by $31 to $458, as we think LMT will trade at a P/E multiple of 15.5x our 2026 EPS estimate, a discount to peers and to LMT's three-year average forward P/E of 17.4x, which we think is justified by concerns about execution, F-35 program durability, and lower cash flow in 2026. We lower our 2025 EPS estimate by $0.64 to $27.63 and our 2026 EPS forecast by $0.11 to $29.53. Q2 2025 program losses of $1.6 billion on legacy fixed-price contracts demonstrate significant execution risks that overshadow LMT's strong market position and combat-proven capabilities, warranting caution despite robust long-term defense spending trends. While the company maintains a record $167 billion backlog with strong growth expected and has proven the strategic value of key platforms like F-35 and PAC-3 in recent combat operations, the magnitude of recent charges and lowered 2026 free cash flow guidance to ~$6 billion indicate near-term financial volatility that requires careful monitoring.