Northrop Grumman price target lowered to $550 from $585 at BofA

BofA lowered the firm’s price target on Northrop Grumman (NOC) to $550 from $585 and keeps a Buy rating on the shares. The stock fell 12.7% on the day the company reported, primarily driven by an unexpected $477M pretax charge on B-21 worth $2.74 per share, the analyst tells investors. However, while the firm wouldn’t be surprised to see incremental charges in future years, it thinks “the market could be missing the forest for the trees” given its view that Northrop’s portfolio is “uniquely aligned to critical defense priorities.” BofA adds that it sees it as highly likely that the FY26 Presidential Budget Request will ask for more B-21s, but lowers its price target to factor in lower near term B-21 profitability.