Susquehanna said the aerospace and technology defense company is an “attractive EPS growth story.”
“Upgrading NOC to Positive as EPS growth, cash flow, and orders are all heading in the right direction. The stock is down 4% over the past month and 25% from its April 2018 high. The entire Aerospace and Defense sector has underperformed the S&P 500 since the Ethiopian Airlines crash on March 10. We have 16% upside to our $315 price target, based on 2020 EPS and EV/EBITDA multiples of 16.3x and 10.5x, respectively, which are slightly below their five-year averages of 16.8x and 11.2x. We see an attractive EPS growth story (~18% in 2020 and ~7% in 2021), supported by a $53.5bn backlog and robust 2019/2020 DoD budgets. A growing top line, coupled with margin expansion opportunities, lower capex, higher D&A, and lower working capital, should help drive a 2018-2021 free cash flow CAGR of 14.8%.”
from Viral News Updates http://bit.ly/2TUvgR2
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