Deutsche Bank Lowers Estimates and PT For Lockheed Martin

Lockheed Martin Corporation

is anticipating delays in the coming weeks due to plane development schedules and pension headwinds pushing consensus estimates down ~10%, Deutsche Bank reports. Deutsche is increasing FAS/CAS pension expenses for 2011 to $1B (from $900M) but believes that LMT can and should contribute additional funds to the pension plan beyond the planned estimates ($1.4B) planned for 2010. Sales estimates for 2011 have also been lowered by Deutsche to +3% (from +4%) due to $500M in runoff for the US Census program and uncertainty surrounding the future of the PTDS program (~$350M). Deutsche Bank maintains its Hold rating and a new $82 price target. Lockheed Martin Corporation closed Friday at $70.38.