UPDATE: Oppenheimer Holdings Downgrades Northrop Grumman Corporation to Perform

In a report published Friday, Oppenheimer Holdings downgraded its rating on Northrop Grumman Corporation

from Outperform to Perform. Oppenheimer noted, “We're downgrading Northrop to Perform from Outperform on valuation; NOC last closed at $71.13, 6% above our prior $67 PT. Though catalysts should remain generally positive for NOC through election day, its current multiple leaves little room for sustained outperformance, in our view. Looking past the elections, we believe investors could become more alert to the risks posed by sequestration. After a year of hearing sequestration catastrophe scenarios, but seeing solid results quarter after quarter, many have been lulled into believing sequestration might somehow resolve itself without materially impacting industry fundamentals. This may ultimately prove true, but it strikes us as insalubriously optimistic to presume as much on the threshold of a potential cliff.” Northrop Grumman Corporation closed on Thursday at $71.13.