Deutsche Bank analyst Scott Deuschle upgraded Northrop Grumman to Buy from Hold with a price target of $575, up from $474. The analyst believes clarity offered on the earnings call with respect to future B-21 profit trends eliminates an overhang that had until now justified a comparatively conservative approach on valuation. Northrop stated that it believed it will be able to produce B-21 units 22-40 profitably, thanks to a combination of price, productivity, and economic price adjustment clause protection on those units, the analyst tells investors in a research note.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on NOC:
- Northrop Grumman price target raised to $500 from $475 at RBC Capital
- Northrop Grumman price target raised to $605 from $593 at UBS
- Northrop Grumman price target lowered to $470.57 from $505 at Baird
- Northrop Grumman expects CapEx to decline going forward
- Northrop Grumman expects book to bill ratio ‘over one’ by end of year