Analyst Gautam Khanna of TD Cowen maintained a Hold rating on Northrop Grumman, boosting the price target to $600.00.
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Gautam Khanna has given his Hold rating due to a combination of factors, including Northrop Grumman’s recent financial performance and future prospects. The company’s strong second-quarter results, with sales and earnings per share exceeding expectations, indicate a recovery from a slower first quarter. This improvement is partly attributed to the positive developments in the Sentinel program and the B-21 bomber project, which have shown encouraging progress.
Despite these positive signs, Khanna maintains a cautious outlook, reflected in the Hold rating. The discussions around the B-21 program, particularly regarding potential adjustments to production terms, suggest there is still some uncertainty about its economic impact. Additionally, while the second-quarter performance eases concerns about the company’s ability to meet its revised guidance for the second half of the year, the substantial increase in sales required remains a challenge. These factors contribute to the decision to hold the stock rather than recommend buying or selling it.
Khanna covers the Industrials sector, focusing on stocks such as Boeing, Booz Allen, and Carpenter Technology. According to TipRanks, Khanna has an average return of 17.8% and a 73.60% success rate on recommended stocks.
In another report released on July 16, Goldman Sachs also maintained a Hold rating on the stock with a $487.00 price target.