RBC Capital analyst Kenneth Herbert maintains $Northrop Grumman (NOC.US)$ with a hold rating, and adjusts the target price from $500 to $540.
According to TipRanks data, the analyst has a success rate of 63.3% and a total average return of 20.2% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Northrop Grumman (NOC.US)$'s main analysts recently are as follows:
Northrop Grumman's Q3 earnings per share and EBIT results surpassed expectations, leading to an adjusted outlook, despite slightly missing revenue forecasts. The company also confirmed its previous guidance and projected a steady revenue growth rate for 2025. Over the past three quarters, the company has exhibited a consistent operational performance with favorable outcomes and adjustments in various business segments. The company is showcasing a resurgence in robust growth, improving profit margins, and the generation of free cash flow. It is also effectively managing two of the Department of Defense's most critical programs, which are expected to be priorities for several decades.
Northrop Grumman's third quarter performance was robust and the positive narrative surrounding its operating margins is promising. However, it is noted that the current share price likely captures much of this positive outlook. The company stands in a favorable position irrespective of the outcome of the 2024 Presidential election, though it's recognized that there could be potential delays in its GBSD - Ground Based Strategic Deterrent - program.
Northrop Grumman's 2025 strategic plan appears attainable and may present opportunities for the company's characteristic positive revisions. The outlook for the fourth quarter appears to be relatively conservative, suggesting the company is positioned well.
Note:
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