Analysts are Downgrading These 5 Stocks

3. Lockheed Martin Corporation (NYSE:LMT)

Number of Hedge Fund Holders: 55

Wells Fargo decreased its ratings for Lockheed Martin Corporation (NYSE:LMT) from “Equal Weight” to “Underweight” on Wednesday, September 28. Analyst Matthew Akers thinks the company could face challenges in 2023 if geopolitical tensions eased.

Akers believes defense stocks, including Lockheed Martin Corporation (NYSE:LMT), are unlikely to gain significant value from the current levels unless there is a geopolitical escalation involving U.S. military. However, the prospects of any escalation are very low, the analyst added.

Separately, investment management firm Old West Investment Management also talked about Lockheed Martin Corporation (NYSE:LMT) in its second-quarter 2022 investor letter, stating:

“As I sat in the theater watching Top Gun: Maverick, it gave me tremendous pride knowing we are shareholders of Lockheed Martin (NYSE:LMT). When the Top Gun: Maverick team was looking to push the envelope and stand true to Maverick’s need for speed, LMT’s Skunk Works was their first call. With Skunk Works expertise in developing the fastest known aircraft along with a passion for defining the future of aerospace, LMT is at the epicenter of our nation’s defense.

Based in Bethesda, Maryland, LMT is an American aerospace arms, defense, information security and technology company. LMT employs 115,000 people worldwide, including 60,000 engineers and scientists. LMT is the world’s largest defense contractor. They manufacture the F-16, F-22 and F-35 fighter jets, Sikorsky Black Hawk helicopters, Skunk Works technology, Javelin, Himars, and Tomahawk missile systems and…” (Click here to see the full text)