Jefferies Downgrades This Defense Contractor Citing Decelerating Growth

Jefferies analyst Sheila Kahyaoglu downgraded Northrop Grumman Corp NOC to Hold from Buy with an unchanged price target of $410 (an upside of 3%).
Northrop Grumman was a top-performing defense stock and the analyst's top pick in 2021.
Kahyaoglu forecasts decelerating growth in the 3.4% compound annual growth range from 2022-2023 for Northrop Grumman with "limited opportunity for upside as a platform supplier with plateauing programs."
The analyst also sees "flattish" segment margins in 2022 and limited potential for incremental capital deployment, leaving Northrop Grumman lacking near-term catalysts.
Price Action: NOC shares are trading lower by 0.05% at $396.79 on the last check Wednesday.