Northrop Grumman price target lowered to $550 from $575 at RBC Capital

RBC Capital lowered the firm’s price target on Northrop Grumman (NOC) to $550 from $575 and keeps an Outperform rating on the shares. The company posted “disappointing” Q1 results and its B-21 charge is negatively impacting sentiment, and while the majority of the B-21 charge reflects one-time manufacturing process changes, it also reflects higher procurement cost, the analyst tells investors in a research note. RBC adds however that longer term it still sees Northrop Grumman as “well positioned”.