Morgan Stanley Ups Lockheed Martin to Equalweight

0:00It's March 29th. You're listening to Durham News today, AI-powered local news. Morgan Stanley's holding steady with their equal weight rating on Lockheed Martin, slapping a $675 price target on the stock, after a big framework deal with the Department of Defense to quadruple production of the Precision Strike Missile. This new agreement builds on a $4.94 billion contract from last year, wrapping Output from about 400 to 1600, units a year, with potential for a seven-year, multi-year deal, if Congress greenlights it. Lockheed CEO Jim Takelet called it key for deep-strike capabilities, while a defense undersecretary stressed investing in factories to stay ahead of, rivals. It's all part of similar packs tripling PAC-3 production and quadrupling FAA. The push comes from pre-SM's combat debut last month in strikes on Iran, plus worries over depleted stockpiles, and the need to replace older ATACMS.

1:00Missiles, with parallel deals for BAE and Honeywell boosting munitions overall. For investors, shares are up 27% in six months, around $622, implying about 8.5%. Upside these deals lock in funding for Lockheed $7 billion production push, spreading costs for better margins and steady growth ahead.