Sterne Agee Maintains Neutral on Lockheed

Sterne Agee reiterates its Neutral rating on Lockheed LMT as short term sentiment is positive and F-35B is expected to survive budget cuts. Sterne Agee says, "Today, Secretary of Defense Panetta will announce the F-35B is no longer on probation, which was put in place over one year ago by former Secretary of Defense Gates. While the F-35B, also known as short takeoff and vertical landing (STOVL) variant, is the smallest portion of the Department of Defense (DoD) F-35 program budget, it has been the poster child of significant cost escalation and missed milestones." LMT closed at $83.71 per share on Thursday.