Wall Street is giving a thumbs up to Northrop Grumman's (NOC +0.4%) purchase of Orbital ATK (OA), seeing it as a long-term positive, but pressuring the latter's near-term outlook.
Morgan Stanley: Management is likely to be "opportunistic" and will continue to prioritize the dividend at 30%-40% of income. Equalweight on NOC, PT $279.
Jefferies: Believes OA has a lower cost structure, so keeping it as a separate organization without certain corporate costs should help NOC win where cost may have been a large factor. Hold on NOC, PT $269.
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