Analyst Says He's Buying Lockheed Martin (LMT) Amid a 'Lot of Demand'

Jim Lebenthal from CNBC Investment Committee explained during a recent program why he owns Lockheed Martin Corp (NYSE:LMT):

“I think that unfortunately the world is a dangerous place and not getting any safer and I think there's going to be demand particularly with the change in stance from the US versus Europe. There's going to be a lot of demand from Europe for defense products. They're not going to be able to supply them all internally, so companies like Lockheed Martin, the rest of the US defense sector, I think are going to benefit over the next several years.”

Conventum – Alluvium Global Fund stated the following regarding Lockheed Martin Corporation (NYSE:LMT) in its Q4 2024 investor letter:

“Lockheed Martin Corporation (NYSE:LMT), the defence contractor, fell 16.3%. Trump’s new mate, Elon Musk, may have something to do with this. According to media reports, he has been “mocking” Lockheed’s F-35 fighter jets, which is the mainstay weapon of air defence for the US and its allies. His comments led to questions as to whether the military still needs manned jets, given the increasing capabilities of drones. This was further fuelled by news that Musk’s SpaceX is likely to be part of a consortium to provide a new generation of defence contractors, and grab a slice of the USD 850b defence budget at the expense of the three incumbents. Whilst not disregarding this news, we do sense that the share price fall may be an over-reaction. It now trades at a smaller premium to our conservative valuation, and at 2.6% of the Fund, we will be monitoring with a view to increasing our position.”

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Disclosure: None. This article is originally published at Insider Monkey.