Lockheed Martin (LMT, Financial) recently faced a setback after losing a significant Pentagon contract for the next-generation fighter jet to its competitor, Boeing. In response, Bank of America has adopted a more cautious stance on the company.
Analyst Ronald Epstein downgraded Lockheed Martin's stock rating from "Buy" to "Neutral." He also significantly reduced the target price from $685 to $485. Epstein noted that most of Wall Street had anticipated Lockheed Martin to secure the contract.
Epstein warned investors to be cautious, referencing March 15 as a day historically associated with unexpected adverse events, indicating that unforeseen challenges could arise. As a result, he expects Lockheed Martin's stock to experience range-bound trading.
Following the announcement, Lockheed Martin's shares fell by 2.4%.
