New York, Jan 12, 2026, 19:24 EST — After-hours
- Lockheed Martin shares closed Monday’s regular session up 1.5%, at $551.24.
- Jefferies raised its price target to $540 from $500 but maintained a “Hold” rating.
- Lockheed’s next key moment arrives Jan. 29 with its earnings report, when guidance and commentary will come under scrutiny.
Lockheed Martin Corp shares gained 1.5% Monday, closing at $551.24. The defense giant remains close to a new 52-week peak following a series of policy-fueled moves in the sector. 1
Why it matters now: traders face a dual challenge—gauging a White House capable of shifting the sector on a single headline, while also sizing up a company approaching earnings amid investors already favoring defense. Some are quick to adapt, others just buy the dips.
The sector’s vulnerability was clear last week: Lockheed shares dropped roughly 7% late Wednesday after U.S. President Donald Trump announced he would bar dividends and buybacks at defense companies. They then jumped about 8% in after-hours trading when he proposed boosting the defense budget by 50% to $1.5 trillion. 2
“Investors don’t necessarily view the string of market interventions as seriously undermining the rule of law and property rights,” William Henagan, a research fellow at the Council on Foreign Relations, told Reuters. 2
Jefferies lifted its price target on Lockheed to $540 from $500 on Tuesday but maintained a “Hold” rating. The move suggests the firm sees some upside potential, though not enough to get bullish right now. A price target reflects where analysts expect a stock to trade over the next year. 3
Jefferies highlighted potential catalysts in its note, including new contract wins and accelerated programs like PAC-3 missiles. The firm expects margins to “stabilize” around 11% by 2026. It also mentioned possible portfolio shifts that could unlock value.
That said, the broker cautioned that Lockheed’s 2026 revenue and earnings-per-share guidance might fall slightly short, even if fourth-quarter revenue hits the expected mark. Earnings per share, which is profit divided by shares outstanding, remains a key measure of performance.
Lockheed’s jump Monday coincided with rallies in fellow defense giants Northrop Grumman and General Dynamics, as money flowed into the sector even though the wider market barely budged. 4
The setup looks complicated. Should Washington impose stricter payout limits or procurement schedules delay, the sector could see a rapid rerating. Stocks trading near their peaks offer little room for a cautious stance.
Traders will be eyeing any new cues from Washington on defense budgets and disbursements in the next session, along with the steady stream of Pentagon contracts that often sway views on the backlog.
Lockheed is set to release its Q4 and full-year results on Jan. 29, followed by a conference call. 5
