Lockheed Martin

Aerospace and defense company

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The Basics
Sector: Defense
Headquarters: Bethesda, MD USA
Ticker: LMT
Current Price: $305.61
Recommendation: STRONG BUY
Target Price: $448.80
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Company Overview
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Overview
Lockheed Martin
❏ Sales by product
❏ Missiles and Fire Systems 14%,
Aeronautics 39%, Space 19%, Rotary
and Mission Systems 28%
❏ Sales by Geography
❏ U.S. Government 69.2%, International
29.5%, U.S. Commercial and other 1.3%
❏ Market Position
❏ Diversified in over four different
markets
❏ Biggest defense stock on the market
❏ Largest U.S. Contractor
❏ Shareholders
❏ State Street Corporation owns 16.48%
Investment Thesis
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Investment Thesis
We rate The Lockheed Martin Corporation (LMT) as a strong buy with a Target Price of $448.80
because of the following key points:
❏ One of the Most Innovative Companies on The Planet
❏ Quantum Computing
❏ Autonomous systems
❏ Military plans and systems
❏ Renewable energy
❏ Growth, Development, and Dominance
❏ Largest U.S. contractor
❏ Leader of many important studies and project around the world
❏ New infrastructure to keep up with the demand for their products
❏ Foreign Potential
❏ Planning on expanding operations outside of the us
❏ Plan to triple their presence in Puerto Rico
❏ A Cash Generating Machine
❏ 307% return rate in past 5 years
❏ Over 4 billion in dividends
❏ Dividends raised every year
Industry Analysis
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Industry Analysis
❏ Military and aeronautics spending is higher than ever before
❏ In U.S. military budget was 716 billion dollars in 2019
❏ Lockheed Martin plans to have bases on the moon and Mars
by 2030
❏ Lockheed Martin receives more than any other company over
46 billion dollars
❏ Most military and aerospace products are Lockheed Martin
❏ 42 different types of aircrafts are sold to more than 10
countries around the world
❏ Emerging markets such as quantum computing and cell manipulation
Revenue Drivers
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Revenue Drivers
❏ Increased Military Spending
❏ U.S. military funding is more than ever before ($716 Billion Dollars)
❏ Expected to rise in the following years
❏ F-35 Program
❏ Behind production of the most advanced and recognisable fighter planes
❏ U.S. government is planning to spend 1.45 trillion for the planes
❏ They plan on selling to other countries like Japan
❏ New Technology and Markets
❏ Extremely diversified
❏ Reprogramming cells to bio produce new materials
❏ 3D printing
❏ Quantum Computing
Valuation
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Valuation
Our 2023 target price is $448.80 per share for Lockheed Martin, which represents 47.4% upside from the current
share price.
❏ Assumptions
❏ We used a target multiple of 20.4x P/E, which is in line with current peer’s average.
❏ We assumed a 2020 E.P.S. of $21.96/share.

Lockheed Martin (YTD)

Coming Soon From
LOCKHEED MARTIN
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The Next Step For Lockheed Martin

❏ Artificial Intelligence and Autonomy
❏ “There’s no doubt that on the battlefield and at home, autonomy and artificial intelligence (AI) are
rapidly becoming part of our daily human experience. We are building AI systems that will keep people
in control while enabling them to be safer, and increase mission success in the toughest and most
unpredictable of situations.”
❏ Directed Energy
❏ “Directed Energy systems use highly-focused energy to disable targets with pinpoint accuracy. Our
engineers are at the forefront of transforming high-power laser technology developed for factories into
inventive and cost-effective defense capabilities for our customers.”
❏ Hypersonics
❏ “Going Mach 5, or 60 miles per minute, creates a number of complex engineering and physics
challenges which is why we leverage expertise and technology from across the corporation to tackle
these challenges with speed, agility and ingenuity. As the Department of Defense’ highest technical
priority, our scientists and engineers are developing game-changing hypersonic solutions to ensure
mission success.”

Source: Lockheed Martin Fact Sheet

 "We grew our business and expanded our
impact in the United States and around the
world. In addition, our impressive and
sustained performance helped us provide
long-term value for our shareholders – with
strong earnings and record new orders and
backlog.” - CEO Marillyn A Hewson

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