Space Shots Drive a Massive Northrop Grumman (NOC) Beat - Jefferies

August 2, 2021 8:45 AM EDT
Get Alerts NOC Hot Sheet
Price: $350.24 +0.17%

Rating Summary:
    21 Buy, 4 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 7 | Down: 15 | New: 24
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Jefferies analyst Sheila Kahyaoglu reiterated a Buy rating and $420.00 price target on Northrop Grumman (NYSE: NOC) after 10% organic revenue growth leads the pack with primes up 5% and defense suppliers down 5%.

The analyst stated "The 4-5% organic growth outlook for the year is likely conservative, w/ opportunities for Space (37% organic growth in the Q) to outperform. NOC revenue could expand 4% organically in 2021 and accelerate to 6% in 2022, while segment earnings advance 8% (organic) and 7%." "Q2 EPS beat our ests by $0.63 aided by a $0.75 segment earnings beat. We raise our estimates to account for Q2 gains, but take a more tempered view on H2 on Space. Our 2021 Adj. EPS rises to $24.70 ($24.40-$24.80 guidance) up from $24.30 previously. We forecast $25.80 in 2022, which is driven by 6% revenue growth offset by a potential $285MM ($1.45/share AT) headwind from lower CAS."

For an analyst ratings summary and ratings history on Northrop Grumman click here. For more ratings news on Northrop Grumman click here.

Shares of Northrop Grumman closed at $363.02 yesterday.

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