Lockheed Martin (LMT) Soars as U.K. Missile Defense Expansion Ignites Investor Frenzy

Defense giant Lockheed Martin rockets higher after unveiling plans to turbocharge Britain's missile shield—because nothing pumps a stock like geopolitical tension.

Arms race 2.0:
LMT's shares surge as governments open wallets wider for defense tech. Who needs dividends when war is your growth catalyst?

Cynical trader's note:
Nothing fixes budget deficits like a good old-fashioned security crisis. The market votes 'buy'—with other people's lives.

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Critical Capabilities

Lockheed Martin, according to a report in the Financial Times, has approached the British government outlining that it is ready to provide it with “critical capabilities” such as interceptors, ground-based sensors and space-based situational awareness. It believes that it could provide these systems to the U.K. to boost its defense capabilities “very rapidly”.

It could also help in developing its command and control system and link it to similar technologies in Europe and the U.S., where President TRUMP has outlined his vision of a ‘Golden Dome’ to protect it from missile attacks.

It comes as the U.K. government looks at ways to combat a growing number of threats from countries such as Russia, either militarily or via cyberattacks. Looking further ahead, nuclear risks from rogue states are also a concern if previous restrictions around the non-proliferation of nuclear technology are relaxed or ignored.

Digital Defense

The U.K. is also under pressure from the U.S. to increase its defense spending as part of the Nato alliance. These calls from President Donald Trump also make the U.K. feel more vulnerable as they call into question Trump’s commitment to the alliance and Western defense.

Recently, the U.K. defense spending review hiked its budget plans and highlighted the importance of air defense systems. It also outlined aims to increase its spending on drones and digital warfare.

Lockheed Martin shares edged up on the news. The stock has climbed only 0.5% over the last 12 months despite a seemingly ever-increasing range of geopolitical threats.

Is LMT a Good Stock to Buy Now?

On TipRanks, LMT has a Moderate Buy consensus based on 7 Buy and 8 Hold ratings. Its highest price target is $600. LMT’s consensus price target is $521.07 implying an 11.20% upside.

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