RBC Capital has revised its price target for Northrop Grumman (NOC, Financial), bringing it down to $550 from an earlier target of $575 while maintaining an "Outperform" rating on the company's shares. This adjustment follows Northrop Grumman's first-quarter results, which were described as "disappointing" by the firm.
The defense contractor faced challenges with its B-21 program, with charges linked to manufacturing process modifications and rising procurement costs, contributing to the negative sentiment among investors. Despite these hurdles, the bulk of the B-21 charge is attributed to one-time changes.
RBC Capital remains optimistic about Northrop Grumman's long-term potential, suggesting the company is strategically positioned for future growth despite the current impediments. The firm’s outlook indicates confidence in the business's ability to overcome present difficulties and capitalize on future opportunities.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 21 analysts, the average target price for Northrop Grumman Corp (NOC, Financial) is $553.16 with a high estimate of $625.00 and a low estimate of $480.00. The average target implies an upside of 16.38% from the current price of $475.29. More detailed estimate data can be found on the Northrop Grumman Corp (NOC) Forecast page.
Based on the consensus recommendation from 25 brokerage firms, Northrop Grumman Corp's (NOC, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Northrop Grumman Corp (NOC, Financial) in one year is $558.39, suggesting a upside of 17.48% from the current price of $475.29. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Northrop Grumman Corp (NOC) Summary page.
