Lockheed Martin Corp (NYSE: LMT) said this week it was on course to increase production of its weapons systems in an attempt to meet higher demand as security concerns are escalating.
The defense company said it was set to increase production of its High Mobility Artillery Rocket Systems (HIMARS) twofold.
HIMARS production capacity has already been raised from 48 per year to 60 per year. Lockheed said it was on course to meet the 96 per year capacity by the end of 2024.
Production of the Javelin anti-tank missile system has been bolstered to 2,400 per year. Lockheed said it expected to raise Javelin production capacity further, to 3,960 units per year, by late 2026.
Geopolitical conflicts, including the war between Russia and Ukraine and the crisis in the Middle East, are pushing up demand for weapons systems produced by US defense firms.
Stock Performance
The shares of Lockheed Martin Corp (LMT) closed 0.22% ($0.95) higher at $424.07 in New York on Friday, as they extended the gain from the previous market session.
The security and aerospace company’s total market cap now stands at $102.474 billion.
The shares of Lockheed Martin Corporation (LMT) went down 6.83% in 2023, compared with a 24.23% gain for the benchmark index, S&P 500 (SPX).
The US defense company’s shares have retreated 6.43% so far this year.
Analyst stock price forecast and recommendation
According to TipRanks, at least 11 out of 15 surveyed investment analysts had rated Lockheed Martin Corp’s stock as “Hold”, while 3 – as “Buy”. The median price target on the stock stands at $477.57, which translates into a 12.62% upside compared to the closing price on Friday.
The high point of the analyst forecast range stands at $540.00.
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