The fallout from the maiden flight of China’s highly advanced sixth-generation fighter jet has also been felt in the US stock market, with shares of Lockheed Martin, maker of the F-35 multi-role fighter jet, in particular, down 1.34% over the past year. 5 days.
A few days ago, videos and images went viral showing a tailless stealth fighter, rumored to be a 6th generation aircraft, conducting a daytime test flight accompanied by a 5th generation J-20S. Many are hailing this as a major leap forward in China’s defense capabilities and military modernization efforts.
Read more: India’s 6th generation fighter dilemma
Media reports speculate that China is developing a sixth-generation fighter jet with enhanced stealth and hypersonic capabilities, with the F-35 combining stealth, advanced sensors, and network warfare capabilities. Concerns have been raised about the sale of Because China’s 6th generation platform is expected to surpass it in terms of all these features.
Lockheed shares fell Thursday after Deutsche Bank downgraded the company from “buy” to “hold,” saying the company is struggling to find convincing upside to its estimates.
“We are lowering Lockheed’s rating (from buy to hold) because we feel our previous thesis is unlikely to hold, and we believe China’s fighter modernization efforts are unlikely to hold up,” said analyst Scott Deuschle. “In the face of this, there are growing concerns about long-term support for the F-35.” wrote Deutsche Bank.
Also read: China’s 6th generation fighter jet discovered? Mysterious fighter jet without tail raises speculation
He further wrote, “…revelation of further advances in fighter capabilities by China could undermine long-term (Department of Defense) demand for the F-35 aircraft.”
According to him, “China’s developments are likely to accelerate the need for NGAD (Next Generation Air Defense), and if NGAD is ultimately successfully fielded by the early to mid-2030s… “There is a possibility that there will be a partial interruption in the procurement program.” ”
NGAD is an initiative by the United States Air Force (USAF) to develop a sixth-generation air superiority fighter. Lockheed Martin is one of the program’s prime contractors, competing alongside Boeing and Northrop Grumman.
