Citibank has indicated that Lockheed Martin remains a favorable stock to consider, even as investors express concerns about potential pressures the company might face following a possible shift in the U.S. political landscape this autumn.

The bank has upgraded its rating on the stock from Neutral to Buy. Concurrently, it has raised its price target from $571 to $582, suggesting a potential upside of 14% from Tuesday's closing price.

Analyst John Godyn stated in a report to clients on Wednesday that investors might be hesitant to purchase defense stocks during market dips due to broader worries about "peak defense spending" and the potential for a "blue wave" political outcome. He noted, "We believe Lockheed Martin serves as a prime example within the defense sector, as the stock has historically demonstrated a consistent and significant ability to rebound following declines."

The analyst further added that this defense contractor has a track record of recovering from industry lows. He also highlighted the company's robust fundamentals, pointing to rapid growth in its missiles and fire control business segment.

Year-to-date, Lockheed Martin shares have gained 7%, slightly underperforming the S&P 500 index.