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Opinion on  Northrop Grumman Corp. (NOC)     Sector: Capital Goods  >  Industry: Aerospace & Defense
Northrop Grumman favored on tanker deal

Aug 12, 2008 02:01 PM GMT
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Return Risk
+0.81% LOW
Sr. Analyst

Boeing is "strongly considering" not bidding on the upcoming competition for a $35 billion U.S. Air Force refueling tanker contract, Aviation Week, the aerospace industry magazine, reported on Monday, without identifying its sources.
The No. 2 Pentagon contractor has not commented on the issue publicly, but some of its backers in Congress have argued that the revised terms of the competition, issued by the Pentagon last week, favor Northrop Grumman Corp and its European partner EADS(...)
The new criteria "appear to favor a tanker larger than any real-world scenarios would require," said Rep. Norm Dicks, a Washington state Democrat and Boeing backer last week, implying that it would favor the larger plane offered by Northrop/EADS.

The Pentagon last week reopened the tanker contract contest with a draft version of its requirements, and will spend the next week or so discussing the criteria with bidders. A final request for proposal is expected in mid-August, with a deadline of Oct. 1 for submission of bids.


NOC:  This call was made on 08/12/08 @ $69.76
Rating:   Positive   $69.76 (08/12/08)
Gain/Loss:   -22.69% in 454 days
Target:   $72.00 (+3.21%) in One month
Allocation:   12.4% of portfolio


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