Why The Northrop Grumman Stock Fell 5.38% (NOC

The stock price of Northrop Grumman (NOC) fell by 5.38% in the most recent trading session. This is why.
The stock price of Northrop Grumman (NOC) fell by 5.38% in the most recent trading session.

Why: Research report

Price target: Reduced from $440 to $375

Rating: Downgraded from “Neutral” to “Sell”

Analyst firm: Goldman Sachs

Goldman Sachs analysts adjusted the rating while noting that Northrop Grumman is a Defense prime with an 85% US Defense mix, exposed to the budget dynamics detailed above. And even though Northrop Grumman won 2 large and early Defense programs that could allow it to outgrow the budget over the next few years (B-21 and GBSD), the company could face any budget pressures should they mount, and those 2 programs are starting to create difficult growth compares given their now substantial contribution to the business. Plus, Northrop Grumman faces margin pressure from cost input inflation and free cash flow pressure from the R&D cash tax input.
The stock price of Northrop Grumman (NOC) fell by 5.38% in the most recent trading session. This is why.
The stock price of Northrop Grumman (NOC) fell by 5.38% in the most recent trading session.

Why: Research report

Price target: Reduced from $440 to $375

Rating: Downgraded from “Neutral” to “Sell”

Analyst firm: Goldman Sachs

Goldman Sachs analysts adjusted the rating while noting that Northrop Grumman is a Defense prime with an 85% US Defense mix, exposed to the budget dynamics detailed above. And even though Northrop Grumman won 2 large and early Defense programs that could allow it to outgrow the budget over the next few years (B-21 and GBSD), the company could face any budget pressures should they mount, and those 2 programs are starting to create difficult growth compares given their now substantial contribution to the business. Plus, Northrop Grumman faces margin pressure from cost input inflation and free cash flow pressure from the R&D cash tax input.

The stock price of Northrop Grumman (NOC) fell by 5.38% in the most recent trading session. This is why.
The stock price of Northrop Grumman (NOC) fell by 5.38% in the most recent trading session.

Why: Research report

Price target: Reduced from $440 to $375

Rating: Downgraded from “Neutral” to “Sell”

Analyst firm: Goldman Sachs

Goldman Sachs analysts adjusted the rating while noting that Northrop Grumman is a Defense prime with an 85% US Defense mix, exposed to the budget dynamics detailed above. And even though Northrop Grumman won 2 large and early Defense programs that could allow it to outgrow the budget over the next few years (B-21 and GBSD), the company could face any budget pressures should they mount, and those 2 programs are starting to create difficult growth compares given their now substantial contribution to the business. Plus, Northrop Grumman faces margin pressure from cost input inflation and free cash flow pressure from the R&D cash tax input.

The stock price of Northrop Grumman (NOC) fell by 5.38% in the most recent trading session. This is why.
The stock price of Northrop Grumman (NOC) fell by 5.38% in the most recent trading session.

Why: Research report

Price target: Reduced from $440 to $375

Rating: Downgraded from “Neutral” to “Sell”

Analyst firm: Goldman Sachs

Goldman Sachs analysts adjusted the rating while noting that Northrop Grumman is a Defense prime with an 85% US Defense mix, exposed to the budget dynamics detailed above. And even though Northrop Grumman won 2 large and early Defense programs that could allow it to outgrow the budget over the next few years (B-21 and GBSD), the company could face any budget pressures should they mount, and those 2 programs are starting to create difficult growth compares given their now substantial contribution to the business. Plus, Northrop Grumman faces margin pressure from cost input inflation and free cash flow pressure from the R&D cash tax input.

The stock price of Northrop Grumman (NOC) fell by 5.38% in the most recent trading session. This is why.
The stock price of Northrop Grumman (NOC) fell by 5.38% in the most recent trading session.

Why: Research report

Price target: Reduced from $440 to $375

Rating: Downgraded from “Neutral” to “Sell”

Analyst firm: Goldman Sachs

Goldman Sachs analysts adjusted the rating while noting that Northrop Grumman is a Defense prime with an 85% US Defense mix, exposed to the budget dynamics detailed above. And even though Northrop Grumman won 2 large and early Defense programs that could allow it to outgrow the budget over the next few years (B-21 and GBSD), the company could face any budget pressures should they mount, and those 2 programs are starting to create difficult growth compares given their now substantial contribution to the business. Plus, Northrop Grumman faces margin pressure from cost input inflation and free cash flow pressure from the R&D cash tax input.

The stock price of Northrop Grumman (NOC) fell by 5.38% in the most recent trading session. This is why.
The stock price of Northrop Grumman (NOC) fell by 5.38% in the most recent trading session.

Why: Research report

Price target: Reduced from $440 to $375

Rating: Downgraded from “Neutral” to “Sell”

Analyst firm: Goldman Sachs

Goldman Sachs analysts adjusted the rating while noting that Northrop Grumman is a Defense prime with an 85% US Defense mix, exposed to the budget dynamics detailed above. And even though Northrop Grumman won 2 large and early Defense programs that could allow it to outgrow the budget over the next few years (B-21 and GBSD), the company could face any budget pressures should they mount, and those 2 programs are starting to create difficult growth compares given their now substantial contribution to the business. Plus, Northrop Grumman faces margin pressure from cost input inflation and free cash flow pressure from the R&D cash tax input.

The stock price of Northrop Grumman (NOC) fell by 5.38% in the most recent trading session. This is why.
The stock price of Northrop Grumman (NOC) fell by 5.38% in the most recent trading session.

Why: Research report

Price target: Reduced from $440 to $375

Rating: Downgraded from “Neutral” to “Sell”

Analyst firm: Goldman Sachs

Goldman Sachs analysts adjusted the rating while noting that Northrop Grumman is a Defense prime with an 85% US Defense mix, exposed to the budget dynamics detailed above. And even though Northrop Grumman won 2 large and early Defense programs that could allow it to outgrow the budget over the next few years (B-21 and GBSD), the company could face any budget pressures should they mount, and those 2 programs are starting to create difficult growth compares given their now substantial contribution to the business. Plus, Northrop Grumman faces margin pressure from cost input inflation and free cash flow pressure from the R&D cash tax input.

The stock price of Northrop Grumman (NOC) fell by 5.38% in the most recent trading session. This is why.
The stock price of Northrop Grumman (NOC) fell by 5.38% in the most recent trading session.

Why: Research report

Price target: Reduced from $440 to $375

Rating: Downgraded from “Neutral” to “Sell”

Analyst firm: Goldman Sachs

Goldman Sachs analysts adjusted the rating while noting that Northrop Grumman is a Defense prime with an 85% US Defense mix, exposed to the budget dynamics detailed above. And even though Northrop Grumman won 2 large and early Defense programs that could allow it to outgrow the budget over the next few years (B-21 and GBSD), the company could face any budget pressures should they mount, and those 2 programs are starting to create difficult growth compares given their now substantial contribution to the business. Plus, Northrop Grumman faces margin pressure from cost input inflation and free cash flow pressure from the R&D cash tax input.