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RBC Capital Markets downgraded Lockheed Martin (LMT) to Sector Perform from Outperform and lowered its price target to $480 from $550. Conversely, RBC upgraded Northrop Grumman (NOC) to Outperform from Sector Perform and increased its price target to $575 from $500.
Market Domination hosts Julie Hyman and Josh Lipton discuss the details.
To watch more expert insights and analysis on the latest market action, check out more Market Domination here.
All right, let's get to our call of the day and that will be RBC Capital Markets out with a new note on some defense names. The analyst is downgrading Lockheed Martin, upgrading North of Grumman, Julie. So let's start with the downgrade. So it looks like they take Locky Martin's sector perform. So they go a hold down on the defense companies saying the F-35 faces greater headline risk for international sales, to go out to increased budget pressure. They say losing the next generation air dominance manned fighter contract has raised fresh questions on the long-term growth outlook, and we believe the near-term catalysts are limited. Target goes to 480.
Yeah, I mean really that um the loss of that contract to Boeing is a big deal that a lot of analysts and investors were paying attention to. We had already seen some um weakness related to that. But the analyst also says the F-35 is a separate, you know, problem for the company. At the same time, they're upgrading North of Grumman to outperform from sector perform, the price target there going to 575. And they're talking about a positive shift in sentiment around the company. And then they say, you know, as we see the shifts and what the Department of Defense is doing, they say that this company is well-positioned in this new environment and that execution on its B-21 does remain strong. So that stock is popping a little bit.
It's interesting to watch our analysts sort of give them shifting DOD priorities, who they think the winners and losers are going to be in there.
Yeah, most definitely.