UPDATE: Stifel Nicolaus Resumes Northrop Grumman Corporation with Hold on Government Services Exposure

Stifel Nicolaus resumes its coverage on Northrop Grumman Corporation NOC with a Hold rating. Stifel Nicolaus comments, "We are resuming coverage of Northrop Grumman with a Hold rating on the shares due primarily to concerns regarding the company's exposure to the government services market and greater downside risk than upside potential to current valuation. …Although 21% of sales are toward the classified market, we suspect a significant piece of this business is service-related and, thus, more likely to see increased competition and margin pressure. However, the remainder of the business appears focused in product-related areas within the Aerospace and Electronic Systems segments, which we view as a positive." NOC closed at $62.11 on Monday.