Deutsche Bank Raises FY11 EPS Estimate On LMT

Deutsche Bank is raising its FY11 EPS estimate on Lockheed Martin Corporation (NYSE: LMT) to $7.40 (from $7.13) “based solely on a $90M (~$0.26 est. EPS) favorable tax ruling expected to be realized in 2Q10.”

“Our 2012 EPS estimate is unchanged, as is our $85 price target, which is based on based on 9.8x our 2012 EPS estimate, in-line with LMT's historical average and peer group,” Deutsche Bank writes. “Risks to the downside include harsher defense spending cuts, poor program performance, and harsher acquisition reform. Upside risks include bigger share repurchase, accretive M&A, new contract wins and better program performance.”

Lockheed Martin Corporation closed Tuesday at $79.04.