Lockheed Martin Stock Supported by Missile and Fire Control Segment Growth, Long-Term Contracts, RBC Says

11:35 AM EDT, 10/23/2026 (MT Newswires) -- Lockheed Martin (LMT) stock is supported by its missile and fire control segment growth, robust free cash flow, and long-term contracts, but faces budget risks in fiscal 2028, RBC Capital Markets said in a Thursday research note. The brokerage said it expects a robust Q4 FCF profile as the company could benefit from the resolution of the F-35 Lot 20-22 contract negotiations and sustained cash inflows from receivables. Better-than-expected Q3 FCF reflects solid collections, working capital management, and continued tailwinds from cash taxes, analysts wrote. The company is confident in its ongoing supply chain improvement as it ramps production across its missile portfolio after recording "very strong" bookings in Q3 and the subsequent 10-year F-35 framework deal, according to the note. The brokerage said it reiterated its sector perform rating on the stock and raised its price target to $600 per share from $550. Price: 596.38, Change: +6.47, Percent Change: +1.10