Northrop Grumman dips as Bernstein downgrades on delayed catalysts
** Northrop Grumman's NOC.N shares down 1.4% at $428.29 early Fri after Bernstein cuts defense contractor to "market-perform" from "outperform" saying it's waiting longer for key catalysts
** Brokerage cuts PT from $535 to $477 vs Street median of $492.43, per LSEG
** Areas of space, the B-21 bomber and NOC's Sentinel intercontinental ballistic missile (ICBM) program had set co on a strong growth path, but all of this is now in context of US Dept of Defense budgets tightly constrained by Congress, Bernstein says in note
** Longer term, Bernstein still expects NOC to be in "a winning position" on technology and the nuclear triad, and a break in Congressional gridlock could move the stock higher, however, for now it sees a pause as appropriate
** Bernstein cuts 2024 and 2025 EPS estimates to $24.60 and $27.84, respectively, from $24.85 and $28.35
** Avg rating among 23 Wall Street brokerages is "hold"
** With move on the session, NOC down 8.5% YTD S&P 500 Aerospace & Defense index's .SPLRCAERO >6% rise
** In 2024, peers Lockheed Martin LMT.N up 3%, RTX Corp RTX.N (formerly Raytheon) up ~25% and General Dynamics GD.N up 15%
(Lance Tupper is a Reuters market analyst. The views expressed are his own)
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