Lockheed Martin Stock Downgraded Amidst China's Fighter Jet Advancements
The annual Wings Over Houston Airshow took place at the Ellington Airport in Texas on October 19, 2019, showcasing aerial performances and displays. However, amidst the excitement, Lockheed Martin, the manufacturer of the F-35 fighter jet, faced a stock downgrade from Deutsche Bank.
The downgrade, from Buy to Hold, came with a lowered price target of $523, down from $611. The bank cited "China's combat aircraft modernization efforts" as a key reason for the decision. This followed the emergence of online videos suspected of showing China's alleged sixth-generation fighter jet.
Deutsche Bank analyst Scott Deuschle expressed concerns about the long-term support for the F-35 in light of China's advancements. He believes that China's progress in combat aircraft capabilities could potentially undermine the Department of Defense's demand for the F-35.
The videos in question, which emerged on Chinese social media in December 2023, showed test flights of two new aircraft. One resembled a ginkgo leaf, while the other was smaller. Defense analysts believe these could be Beijing's first advanced sixth-generation stealth fighters.
While the Chinese military and defense industry haven't officially confirmed the videos or made any announcements, the Chinese People's Liberation Army (PLA) Eastern Theater Command released a music video for the New Year featuring a ginkgo leaf and a bird, further fueling speculation.
Meanwhile, the US Air Force has paused its efforts to develop a sixth-generation fighter due to cost concerns. This leaves Lockheed Martin's long-term prospects uncertain, leading to the stock downgrade.
Despite the lack of official confirmation, the videos suggest that China is making significant progress in its next-generation military aircraft research and development. This, coupled with the lack of publicly known videos showing the testing of the US' sixth-generation fighter jet, raises concerns about Lockheed Martin's future.
10 Comments
Marishka
The F-35 program has been too expensive and unstable. Maybe this downgrade is the reality check we need.
Pupsik
Seeing these videos of possible sixth-generation fighters is alarming. We must take this seriously!
Marishka
People need to chill. The stock market fluctuates all the time; this is just a blip.
Pupsik
This is a wake-up call! We need to support our defense contractors especially in light of rising threats.
Marishka
Worrying about China's advancements is pointless. The U.S. defense strategy is robust enough to handle any threats.
Coccinella
Instead of downgrading stocks, how about looking at the innovative capabilities of Lockheed Martin?
Muchacho
It’s high time the U.S. Defense Department reassesses its strategy against China’s advancements!
ZmeeLove
This is just another fear-mongering tactic! Lockheed Martin will bounce back, just wait.
Coccinella
China’s advancements are real and concerning. The U.S. needs to ramp up its own capabilities!
Mariposa
The halt on developing new fighters is problematic; we could fall behind if we don't act fast.