UBS Upgrades Lockheed Martin, Citing Underappreciated Earnings Potential

UBS has upgraded Lockheed Martin to buy from neutral, according to a report published by CNBC on Monday.

The bank said the defense giant's earnings upside is not being fully appreciated by investors, CNBC reported, citing the UBS note.

Lockheed Martin, one of the world's largest defense contractors, has faced scrutiny from analysts over its earnings performance in recent periods. The upgrade suggests UBS sees stronger financial prospects ahead for the company than the market currently reflects in its share price.

Further details on the specific factors behind UBS's revised outlook, including any changed price target or projected earnings figures, were not included in the available excerpt of the report.

CNBC did not immediately provide additional commentary from Lockheed Martin in response to the rating change.