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Luke Kawa

BofA downgrades Lockheed Martin, slashes price target by 30% after it lost Air Force deal

The Air Force’s decision to pick Boeing over Lockheed Martin for its next program of jets caps a rough month for the defense giant that has Bank of America analysts led by Ronald Epstein borrowing a line from “Office Space”: what would you say you do here?

“Given recent US geopolitical re-posturing (tariffs, reducing support for NATO and sovereignty threats targeted at Canada and Greenland), the F-35 international partners are naturally concerned about their reliance on the program and rethinking their commitments,” he wrote. “This begs the question as to what LMT’s future is as a Prime Contractor in a 6th gen fighter world if they are not leading the development of any of the manned 6th gen program.”

The stock cratered after this decision, which was announced on Friday.

Epstein downgraded the company to “neutral” from “buy” and cut his price target by almost 30% to $485. Shares are currently trading around $434.

The analyst said he, and most of the industry, expected Lockheed Martin to win this deal.

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J. Edward Moreno
4h
Tilray rises after reporting earnings, revenue beat

Tilray’s biggest areas of revenue growth have been its alcohol business and its international market.

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Tasha Matsumoto
4h
The S&P 500 finishes flat but tech weighs down the Nasdaq 100

Investors were in risk-off mode ahead of tomorrow’s jobs report.

BISHOP'S STORTFORD, ENGLAND - JANUARY 25: Snowfall in the Essex countryside on January 25, 2021 in Bishop's Stortford, Essex, United Kingdom.
markets
Matt Phillips

AST SpaceMobile rises after favorable commentary from BofA

Mobile-services-from-space play — and retail investor favorite — AST SpaceMobile rose after receiving a target price upgrade from Bank of America analysts.

In a note published Thursday, BofA telecom services analysts lifted their price target for the stock to $100 from $85, while noting that the low-Earth orbit satellite industry — which supercharged stocks like Rocket Lab, Planet Labs, and AST in 2025 — is set to gain more attention this year:

“We expect the momentum to intensify in 2026 as providers like ASTS and Starlink jockey to offer full cellular service and capture subscribers. Debates will likely grow regarding Starlink’s plans to offer full cellular service and regulatory decisions on Ligado and EchoStar spectrum transactions are events to watch. Carrier partnerships could evolve and pricing and plan decisions should be clearer by year end as ASTS approaches full constellation operability.”

Still, they maintained their “neutral” rating on the stock, saying they “await progress on ASTS 1) fully producing and subsequently launching its BlueBird satellite constellation, 2) successfully operating the constellation, and 3) capturing subscribers and turning them into revenue paying subscribers before becoming more constructive on the story.”

The market has been less reticent: the money-losing company’s shares are up approximately 300% over the last year.

Luke Kawa
AIudiophile
8h
Morgan Stanley: Most Gen Zers and millennials in the US listen to about three hours of AI music a week

That’s enough AI music to last the run time of “Avatar.”

WNBA: JUN 23 Indiana Fever at Chicago Sky
Max Knoblauch

Bulls pour into Joby and Archer options as Trump’s push for record defense budget boosts eVTOL names

Options traders appear bullish on electric aircraft makers like Archer Aviation and Joby Aviation on Thursday, with large volumes boosting the stocks following President Trump’s call for a record $1.5 trillion US military budget for 2027.

Both companies, as well as newly public rival Beta Technologies, have sizable defense contracts. In July, Archer CEO Adam Goldstein told Sherwood News that he believes the company’s defense side will outpace its civil air taxi service for at least a decade.

Traders seem to believe him. As of 10:53 a.m. ET, about 31,000 Archer call options had exchanged hands, around 9,000 short of its 20-day average for a full day. Joby saw roughly 20,000 call options traded by the same time, eclipsing its 20-day average. For the most actively traded calls for Joby and Archer (C$17s expiring February 20 and C$9s expiring on Friday, respectively), volumes on the ask side are outstripping the bid or mid, indicating motivated buyers.

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