Lockheed Martin Corporation (NYSE:LMT) signed a framework agreement with the U.S. Department of War on September 17 to accelerate production of the AIM-260 Joint Advanced Tactical Missile (JATM). The weapon is described as the most sophisticated U.S. air-to-air system and a direct response to China's air threat. The agreement provides a long-term demand signal and suggests strong institutional confidence in the need for the missile. However, the more important issue for investors is whether that expected demand will translate into secured orders.
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