FBR Capital Reiterates a 'Market Perform' on Northrop Grumman (NOC)1Q11 Results Roughly in Line
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Price: $585.87 +1.94%
Rating Summary:
18 Buy, 13 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
18 Buy, 13 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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FBR Capital reiterates a 'Market Perform' on Northrop Grumman (NYSE: NOC), PT $65.
FBR analyst says, "Defense stocks such as NOC perform well when the threat environment is high, defense budgets are rising, and new programs are being established. Unfortunately—from a stock perspective—although the global threat environment continues to devolve, defense budgets are coming under intense pressure, which is likely to accelerate, and relatively few new programs are being established. As a result, it is our expectation that defense stocks will face a challenging environment for order growth and volume increases, barring some external shock to the system. Valuations remain attractive, and defense companies are raising their dividends and buying back a significant amount of stock, which should create a floor under these names. But there is no obvious near-term catalyst to improve valuations going forward, and we do not get the sense that the group is yet cheap enough to attract deep-value investors."
For more ratings news on Northrop Grumman click here and for the rating history of Northrop Grumman click here.
Shares of Northrop Grumman closed at $62.90 yesterday.
FBR analyst says, "Defense stocks such as NOC perform well when the threat environment is high, defense budgets are rising, and new programs are being established. Unfortunately—from a stock perspective—although the global threat environment continues to devolve, defense budgets are coming under intense pressure, which is likely to accelerate, and relatively few new programs are being established. As a result, it is our expectation that defense stocks will face a challenging environment for order growth and volume increases, barring some external shock to the system. Valuations remain attractive, and defense companies are raising their dividends and buying back a significant amount of stock, which should create a floor under these names. But there is no obvious near-term catalyst to improve valuations going forward, and we do not get the sense that the group is yet cheap enough to attract deep-value investors."
For more ratings news on Northrop Grumman click here and for the rating history of Northrop Grumman click here.
Shares of Northrop Grumman closed at $62.90 yesterday.
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