Truist Trims Lockheed Target but Reaffirms Buy on Defense Strength and Valuation Appeal

Lockheed Martin (NYSE: LMT) is one of the best space stocks to buy according to hedge funds. On July 11, 2025, Truist analyst Michael Ciarmoli reaffirmed his Buy rating on Lockheed Martin but trimmed the 12-month price target from $579 to $554.

This ~4.3% reduction isn’t a red flag; it reflects nuanced adjustments, not a shift in fundamental confidence. Ciarmoli highlights manageable tariff challenges in both commercial aerospace and defense, supported by a backdrop of robust global defense budgets and strong aftermarket demand.

He also notes Lockheed’s valuation remains attractive: small- and mid-cap defense and space peers trade at a roughly 122% premium to large-caps. Despite the price-target cut, Truist sticks with Buy, signaling belief in the company’s resilience amid macro uncertainties.

Lockheed Martin is a global aerospace and defense giant, designing and producing iconic systems, from F-35 and F-22 fighter jets to advanced missile systems, satellites, and spacecraft, serving U.S. and international military, intelligence, space, and security clients.

While we acknowledge the potential of LMT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.