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Investing.com - Bernstein raised its price target on Northrop Grumman (NYSE:NOC) to $630.00 from $586.00 on Thursday, while maintaining a Market Perform rating on the defense contractor’s stock. The new target represents potential upside from the current price of $575.47, with the stock already trading near its 52-week high and showing strong momentum with an 8.5% gain in the past week.
The price target increase follows Northrop Grumman’s second-quarter earnings report, which showed stronger-than-expected results with both earnings per share and revenues beating consensus estimates. The company reported $27.15 in diluted earnings per share over the last twelve months, with revenues reaching $40.5 billion.
Bernstein noted improved investor confidence after initial concerns that arose following first-quarter results, which had included a B-21 charge, Air Force delays in the Sentinel program, and declining Space revenues.
The research firm highlighted several positive developments, including additional funding for the B-21 and Sentinel programs, positive Sentinel EACs (Estimate At Completion), planned E-2D additions for the U.S., and overall improved operating performance across the company.
Bernstein has raised its earnings per share estimates for Northrop Grumman to $25.58 for 2025 (up from $25.21) and $27.65 for 2026 (up from $27.60), while noting that the possibility of a future B-21 charge remains and that recovery in the Space Systems segment is still anticipated. For deeper insights into Northrop Grumman’s financial health, valuation metrics, and 12+ additional exclusive ProTips, visit InvestingPro.
In other recent news, Northrop Grumman reported strong quarterly earnings, with earnings per share of $8.15, surpassing consensus estimates of $6.84 by 19%. This performance led RBC Capital to raise its price target for the company to $625, maintaining an Outperform rating. Truist Securities also increased its price target to $625, citing growth in the B-21 program and robust international demand. BofA Securities followed suit, raising its price target to $650 due to progress on the B-21 program and the belief that previous risks have been managed effectively. Additionally, Northrop Grumman secured a $495 million contract from the Department of Defense for engineering services, with work to be completed by 2030. The company was also awarded a $140 million contract modification to support the production of E-2D Advanced Hawkeye aircraft for Japan. These developments highlight Northrop Grumman’s continued momentum in securing significant defense contracts and achieving financial performance that exceeds market expectations.
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