Lockheed Martin (LMT) Fires Higher Despite Poland Ditching Black Hawk Deal

U.S. defense giant Lockheed Martin (LMT) stayed resolute today despite the Polish government canceling a helicopter contract.

Procurement Pulled

Lockheed Martin stock was up 0.3% in pre-market trading despite Poland ditching the procurement procedure for the purchase of 32 more S-70i Black Hawk helicopters for the Polish Army.

“Maybe it is necessary to acquire other equipment in its (helicopters’) place, such as drones, or tanks, or some kind of communication,” Polish Armament Agency spokesman Grzegorz Polak told Reuters.

Polak added that “some correction” was needed when the geopolitical situation and state security interests required other tasks to be carried out.

Poland launched negotiations for the acquisition of 32 S-70i Black Hawk helicopters, produced by Lockheed Martin’s Polish arm PZL Mielec, in 2023 under the previous Law and Justice (PiS) government.

The effectiveness of drones on the battlefield has been one of the clearest lessons military chiefs have learned during the Ukraine and Russia war. This could explain the change in direction from the Polish government.

NATO Surge

Despite the loss of the deal, Lockheed Martin remains in a strong position given the increased commitment from European nations and the U.S. to ramp up defense spending in the wake of growing threats.

Only yesterday, NATO Secretary General Mark Rutte proposed that NATO members spend 5% of gross domestic product (GDP) on defense, meeting the demands of President Trump. That is a huge ramp-up from the current target of spending 2% of GDP.

However, following negotiations, the level might settle at 3.5%.

Even at that figure, it should be a boon for defense firms both in Europe and the U.S. Lockheed Martin’s share price has climbed 4% over the last three months.

Is LMT a Good Stock to Buy Now?

On TipRanks, LMT has a Moderate Buy consensus based on 7 Buy and 8 Hold ratings. Its highest price target is $600. LMT stock’s consensus price target is $521.07 implying a 9% upside.

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