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Barron's thinks long-time languishing LMT stock prices may get a significant boost from the mutual desire of both Democrat and Republican candidates to look strong on defense this election year.

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Support for F/A-22 could lift Lockheed - Barron's
July 11, 2004 8:19:00 PM ET

NEW YORK, July 11 (Reuters) – The underperforming stock price of Lockheed Martin Corp. (LMT) could take flight if Congress expresses more support for the company's experimental F/A-22 fighter aircraft, Barron's said in its latest edition.

Shares of Lockheed Martin have risen 11 percent in the past year, well below the 25 percent price rise seen for rival aerospace and defense stocks, the publication said.

"Wall Street is simply too jittery about the F/A-22," Barron's said, referring to the first all-new fighter aircraft since the 1970s, which has fighter and attack capabilities.

Barron's said an estimated 24 planes have already been delivered for Air Force testing and another 59 are under construction and on order. . . the Air Force has said it needs 381 planes. . . Moreover, the government may be willing to increase purchases if initial tests of the first two dozen aircraft prove favorable, Barron's said.

Although the F/A-22 program accounts for only $1 billion to $2 billion of Lockheed's $32 billion in annual sales, heightened enthusiasm for the aircraft could help lift Lockheed shares to as high as $70, more than 30 percent above their current level of $53.99. . .


As always,

Tom <Long time Long LMT>
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