S&P Raises Lockheed Martin (LMT) to Buy From Hold

S&P raised Lockheed Martin (NYSE: LMT) from a hold to a buy in the Mar. 17, issue of the Outlook. They believe that all the bad news is out on the recently announced two-year delay in the F-35 Joint Strike Fighter (JSF). They believe that the U.S. military remains committed to its purchase of about 2,500 JSF’s over the next two decades .

The 2011 defense budget will likely be stronger than anticipated. S&P believes that sentiment for the shares will remain positive. They raised their 2010 earnings per share (EPS) estimate by $0.05 to $7.40, and 2011’s by $0.25 to $7.70. They raised their 12-month target price by $22 to $87, primarily on the view of slight multiple expansion.