Lockheed Martin is an undervalued company with the US governme | 🚀 Robin Rocket

Lockheed Martin is an undervalued company with the US government as its main client

The aggravation of the situation in Afghanistan is likely to lead to an increase in US defense spending, which will positively affect the financial results of Lockheed Martin, the world's largest defense contractor. Consider the company's prospects.

Lockheed Martin $LMT is an American military-industrial corporation specializing in the construction of aerospace technology.
Target price from Morgan Stanley - $458, upside potential +31%

Theses in favor of the company's growth:

• Diversified business. The main areas are: aircraft construction, rocketry and the development of fire control systems; production of rotary and combat systems; space industry.

• The company presented positive reports for the 2nd quarter of 2021. Earnings per share increased nearly 13% y / y to $6.52. Revenue exceeded forecasts and amounted to $17.03 billion, which is 5% higher than last year.

• Underestimation of the company by the market. Lockheed Martin currently trades with the lowest forward P / E among peers - the market values ​​the company at about 13 annual earnings, while the sector median is 20.

• Potential acquisition of a key member of the rocket industry Aerojet Rocketdyne $AJRD.

Fundamental indicators:

• Market Cap: $98.58 billion
• fwd P/E = 12.5x
• fwd P/E sector = 20.56x
• PEG = 3.23x

Not an investment recommendation.