UPDATE: Bank of America Reiterates On Northrop Grumman On Share Repurchase Program

Dwight Einhorn
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In a report published Friday, Bank of America analyst Ronald J. Epstein reiterated a Neutral rating on Northrop Grumman Corporation (NYSE: NOC), and raised the price target from $130.00 to $145.00.

In the report, Bank of America noted, “Today Northrop Grumman's (ticker: NOC) board of directors approved an additional $3bn share repurchase authorization. As of September 30, 2014, NOC had $1.0bn remaining under previous $4.0bn share repurchase program announced on May 15, 2013. As of end of 3Q14, NOC repurchased 25.6mn shares for $3.0bn under the 2013 repurchase plan. Common share buybacks under the 2013 program started in September 2013, when the 2010 repurchase program was completed. In 9M14, NOC repurchased 16.9mn shares for $2,058mn, retiring an aggregate amount of 37.7mn shares towards management's 25% share count reduction goal. Along with the 2013 plan, NOC announced the goal of retiring 25% of the outstaring shares (or ~60mn shares) by the end of 2015. We remain comfortable with our estimate for diluted share count declining at 9% Y/Y each year in the 2014-2018 period which assumes aggregate share repurchase of $12.2bn.”

Northrop Grumman closed on Thursday at $139.84.

Latest Ratings for NOC

Dec 2014

Bank of America

Maintains

Neutral

Nov 2014

Barclays

Maintains

Equal-weight

Oct 2014

Credit Suisse

Maintains

Neutral

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