Benzinga | Sep 29, 2021 07:26AM EDT

Cowen Downgrades Lockheed Martin To Market Perform - Read Why

* Cowen analyst Cai von Rumohr downgraded Lockheed Martin Corp (NYSE:LMT) to Market Perform from Outperform and lowered the price target to $375 (implying an upside of 6.55%) from $400.

* The analyst feels Lockheed Martin still offers well-supported peer-hi yields on its dividend and free cash flow; its relative upside looks capped by pared F-35 delivery plans, disappointing initial 2022 guidance, and other overhangs.

* He believes Aerojet Rocketdyne Holdings Inc (NYSE:AJRD) would be a good strategic fit that could add 40c-45c to pro forma adjusted EPS in 2022.

* Also Read: Lockheed Martin, Pentagon Agree On F-35 Production Rebaseline

* Price Action: LMT shares are trading higher by 0.24% at $353.01 during the premarket session on Wednesday.