TD Cowen analyst Gautam Khanna has maintained their neutral stance on NOC stock, giving a Hold rating yesterday.
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Gautam Khanna has given his Hold rating due to a combination of factors surrounding Northrop Grumman’s financial outlook and operational performance. The company’s Q3 earnings exceeded expectations largely due to non-operational factors, and the guidance for Q4 was below market expectations. Additionally, the 2026 financial outlook aligns closely with market consensus, with projected growth and margins not including potential gains from significant contracts like the B-21 or F/A-XX.
Northrop Grumman’s management anticipates moderate growth across all segments by 2026, but challenges such as reduced pension income and the impact of unusual items on 2025’s earnings per share are notable. While the B-21 program shows promising progress, with ongoing flight and ground tests, the financial benefits from potential contract accelerations and increased orders remain speculative. These uncertainties, combined with the company’s current financial projections, contribute to the Hold rating as the stock’s potential upside is limited under current conditions.
In another report released yesterday, TR | OpenAI – 4o also downgraded the stock to a Hold with a $659.00 price target.