Lockheed Martin Upgraded to Buy at UBS on 3.2x Book-to-Bill and Missile Demand
Resolved · corporate · Occurred · Assessed · 1 sources
This assessment is dated 2026-09-09. Check what remains unresolved below before relying on it.
What does this change in the investment case for Lockheed Martin?
A 3.2x book-to-bill ratio expands revenue visibility, supporting multiple re-rating across U.S. prime defense contractors.
| Question | What the evidence establishes |
|---|---|
| What was reported? | Reported factUBS upgraded Lockheed Martin (LMT) to Buy, citing a 3.2x book-to-bill ratio. |
| What else was confirmed? | Reported factUBS forecasts 9% annual sales growth and double-digit earnings growth over the next 2-3 years. |
| Does the valuation support acting? | Interpretation5 stored valuation assumptions for LMT; the latest is dated 2026-09-09. |
| What would change the assessment? | UnknownDoD Contract Award Notices — Daily Pentagon contract announcements for missile defense and aeronautics tranches. |
What would this event cost your holdings?
Apply your own hypothetical returns to current holding values. The calculator does not infer security effects from this event.
Test this event against my holdingsReported facts
- · UBS upgraded Lockheed Martin (LMT) to Buy, citing a 3.2x book-to-bill ratio.
- · UBS forecasts 9% annual sales growth and double-digit earnings growth over the next 2-3 years.
- · Lockheed Martin currently trades at 19.2x earnings and under 14x free cash flow.
Public research record
Research framework · page evidenceCompleted event assessment
valuation multiple expansion on backlog growth
| Type | Claim | Scope |
|---|---|---|
| Assumption | UBS upgraded Lockheed Martin (LMT) to Buy, citing a 3.2x book-to-bill ratio. | 2026-09-09 |
| Interpretation | valuation multiple expansion on backlog growth | LMT |
Countercase, invalidators, and sources
DoD procurement appropriations accelerate, sustaining book-to-bill above 3.0x and driving EPS ahead of consensus.
- · DoD Contract Award Notices — Daily Pentagon contract announcements for missile defense and aeronautics tranches.
- Why Lockheed Martin Stock Popped Today · 2026-09-08
What remains unresolved
- Base path
- LMT executes on existing F-35 backlog, delivering 9% annual sales growth with stable free cash flow conversion.
- Adverse path
- Supply chain bottlenecks in rocket motor and avionics production delay delivery milestones, compressing cash flow.
- Supportive path
- DoD procurement appropriations accelerate, sustaining book-to-bill above 3.0x and driving EPS ahead of consensus.
- · DoD Contract Award Notices — Daily Pentagon contract announcements for missile defense and aeronautics tranches.this week
Evidence
- Why Lockheed Martin Stock Popped Today2026-09-08
“UBS upgraded Lockheed Martin to buy, citing strong growth prospects from its F-35 fighter jet franchise and missile sales. With a book-to-bill ratio of 3.2x, UBS forecasts 9% annual sales growth and double-digit earnings growth over the next 2-3 years.”
Supports: UBS upgraded Lockheed Martin to buy citing 3.2x book-to-bill ratio and forecast 9% sales growth.