LMT Stock Today: January 7 — Goldman Reiterates Sell at $430 Target
Lockheed Martin stock slipped 2.0% to US$511.57 today after Goldman Sachs reiterated a Sell with a US$430 target. The call arrives days after a seven-year PAC-3 MSE Patriot missile production pact, giving revenue visibility but raising margin questions. For Canadians, the stock trades in U.S. dollars, so FX will affect returns. Volume topped 1.98 million shares versus a 1.37 million average. We review valuation, technicals, and what matters before the January 29 earnings date for LMT.
Goldman’s bearish call versus missile contract tailwinds
Goldman Sachs kept a Sell on Lockheed Martin stock with a US$430 target, implying about 16% downside from today’s US$511.57. The bank cites valuation and margin risk. Street stance remains Hold overall, with a median target near US$543. For context, see the rating update on Investing.com: Goldman Sachs reiterates Sell rating on Lockheed Martin stock at $430.
The U.S. Department of Defense agreed to ramp PAC-3 MSE Patriot missile output for seven years, a multi-year boost for Missiles and Fire Control. That supports backlog and revenue visibility, but fixed-price dynamics can cap margins. See coverage: Why Lockheed Martin Stock Popped Today. Canadian investors should balance contract support with near-term valuation risk highlighted by Goldman.
Valuation, margins, and cash returns in focus
Lockheed Martin stock trades at 27.8x TTM earnings, 1.61x sales, and 17.7x EV/EBITDA, while EPS fell 19% and net income declined 22.9% in FY2024. The PEG ratio near 33 suggests rich pricing against growth. These metrics back a cautious stance until earnings re-accelerate or guidance shows margin expansion tied to the PAC-3 scale-up.
Net margin is 5.73% and operating margin 8.31%, reflecting cost pressures. The free cash flow yield is 3.92% with a 2.67% dividend and a 74% payout ratio. Debt-to-equity is 3.59 and interest coverage is 5.6x, leaving room for dividends but limiting buyback flexibility if rates stay higher. Cash discipline remains key in 2026.
What today’s tape says: technicals and levels
RSI at 75.35 and Stochastic at 90 signal overbought conditions. Price sits slightly above the upper Bollinger Band (US$511.07), with ATR at 11.23 flagging wider swings. After a day low of US$503, near-term risk skews to consolidation. Momentum is strong, but overbought readings argue for patience if you are building a position.
Immediate resistance is the 52-week high at US$538.73. Initial support sits near today’s low at US$503, then the 50-day average at US$472.73 and the 200-day at US$466.55. For Canadians, consider scaling entries and using limits in U.S. dollars to control FX slippage around these zones.
Canada-focused checklist before January 29 earnings
Lockheed Martin stock is a U.S.-listed security. RRSPs typically avoid the 15% U.S. withholding tax on dividends under the treaty, while TFSAs and taxable accounts do not. Decide on hedged or unhedged exposure based on your USD needs. FX can add or reduce returns regardless of share performance.
Q4 results are due January 29, 2026. Watch PAC-3 production ramp timing, backlog growth, and segment margins. Free cash flow guidance and any capital return update will set the tone. Street median target sits near US$543, while Goldman’s US$430 underscores downside risk if margins disappoint.
Final Thoughts
Goldman’s Sell at US$430 pushes investors to test the trade-off between multi-year PAC-3 demand and a full valuation. Lockheed Martin stock carries premium multiples with modest margins, leaving little room for execution slips. Technically it is overbought, so a pullback toward moving averages could offer better entry points. For Canadians, think in U.S. dollars, consider holding in an RRSP for dividend efficiency, and use limits to reduce FX drag. Into January 29, we would track margin commentary, backlog, and free cash flow. If the outlook improves, the Street’s higher median target could reassert itself; if not, Goldman’s caution may gain traction.
FAQs
Why did Lockheed Martin stock move lower today?
Goldman Sachs reiterated a Sell with a US$430 target, implying roughly 16% downside from today’s price. That cautious view overshadowed optimism from the seven-year PAC-3 MSE production ramp. The stock also looked overbought on technicals, which can trigger profit-taking after strong runs.
Is Lockheed Martin stock a buy right now for Canadians?
It depends on risk and time horizon. Valuation is rich at 27.8x earnings and technicals look stretched. If you want exposure, consider scaling in on weakness or waiting for the January 29 results. Hold in an RRSP for dividend efficiency and plan for USD/CAD currency effects.
What does the PAC-3 MSE Patriot contract change?
It adds multi-year revenue visibility for the Missiles and Fire Control segment and supports backlog growth. However, fixed-price and cost dynamics can cap margins, so the key is whether scale improves profitability. Watch management’s 2026 margin and free cash flow guidance to gauge the true earnings impact.
What technical levels matter most now?
Resistance is near the 52-week high at US$538.73. Initial support is today’s low around US$503, followed by the 50-day moving average at US$472.73 and the 200-day at US$466.55. Overbought readings suggest waiting for a pullback toward moving averages before adding shares.
How should Canadian investors manage currency and taxes with LMT?
The shares trade in U.S. dollars. RRSPs generally avoid the 15% U.S. dividend withholding tax, while TFSAs and taxable accounts do not. Use limit orders in USD and consider whether unhedged exposure fits your goals, since USD/CAD moves will influence total returns.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
