Northrop Grumman (NOC) PT Lowered at Truist as 'Surprise B-21 Charge Erases the Stock's YTD Gains'

Truist Securities analyst Michael Ciamoli lowered the price target on Northrop Grumman (NYSE: NOC) to $550.00 (from $600.00) while maintaining a Buy rating.

The analyst commented: "Surprise B-21 Charge Erases the Stock's YTD gains; We maintain our BUY rating but lower our PT to $550 (from $600) post 1Q25. Results missed expectations and were negatively impacted by a surprise B-21 charge. While mgmt reaffirmed its rev/FCF outlook it reduced its margins and EPS outlook for the year. On the plus side mgmt did reaffirm its LT FCF targets which will be absorbing the B-21 cash headwind in the coming years. The sentinel prgm is progressing and strong demand for missiles/weapons should drive DD growth in the defense systems seg. Tariffs should prove to be manageable and backlog should grow throughout 2025. Despite today's hit NOC shares are only down 1% YTD (S&P -9.9%)."

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