In the aftermath of Iran’s recent drone attack on Israel, JPMorgan has upgraded Lockheed Martin stock from neutral to overweight in a note on Monday. This move was based on the bank’s belief that the attack could lead to an increase in defense spending and potentially boost Lockheed’s stock price.
JPMorgan analyst Seth Seifman believes that the current situation in the Middle East presents a favorable outlook for defense stocks, especially given Iran’s retaliatory strikes against Israel. He also mentions that additional spending is forecasted for Ukraine, Israel, and Taiwan due to a slight increase in the defense budget last month. Despite uncertainties in the market, any change in momentum is likely to benefit defense stocks, particularly Lockheed Martin.
Seifman emphasizes the importance of being prepared in a dangerous world and highlights the potential for defense stocks to outperform under such conditions. As such, JPMorgan will continue to monitor developments in the Middle East and their potential impact on Lockheed Martin and the defense sector as a whole. The upgrade of Lockheed Martin stock reflects the bank’s optimism about its performance in light of recent events in the region.
