RBC Capital analyst Ken Herbert lowered the firm’s price target on Northrop Grumman to $520 from $550 and keeps an Outperform rating on the shares. The company’s strong Q4 sales and earnings did not fully translate to margins and free cash flow, the analyst tells investors in a research note. The management also addressed the B-21 margin questions as the program starts to transition to LRIP, which could be a margin headwind, the firm adds, though RBC Capital maintains a favorable view on the stock based on its defense exposure.
Published first on TheFly
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