Northrop named Top Defense Pick at Morgan Stanley after ‘clearing event’

Morgan Stanley analyst Kristine Liwag named Northrop Grumman (NOC) as the firm’s Top Defense Pick, replacing L3Harris Technologies (LHX), as the firm sees the B-21 program being “significantly de-risked” after the company took a $1.2B charge as the “possible” losses on the LRIP portion of the B-21 program have now become “probable.” Yesterday’s selloff in the stock was “overdone,” argues the analyst, who views the earnings report and B-21 announcement as a “clearing event” and reiterates an Overweight rating and $579 price target on Northrop shares.