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Investing.com - BofA Securities raised its price target on Northrop Grumman (NYSE:NOC) to $650.00 from $550.00 on Wednesday, while maintaining a Buy rating on the defense contractor’s stock. The new target sits well above the current trading price of $563.79, with InvestingPro data showing analyst targets ranging from $497.79 to $663.00.
Northrop Grumman shares rose 9.4% on its earnings release day, compared to the S&P 500’s 0.1% gain, reflecting market optimism that key programs are on schedule and previous charges have adequately addressed risks.
BofA Securities noted signs that the B-21 bomber program appears to be on more stable footing, though the firm acknowledged that future charges remain possible for the defense contractor.
The investment bank expressed interest in Northrop Grumman’s discussions about seeking "fair and equitable returns" on future Low-Rate Initial Production (LRIP) and Not-To-Exceed (NTE) contract lots.
BofA Securities cited Northrop Grumman’s investments in advanced capabilities and robust global demand as supporting factors for its portfolio, which the firm views as well-aligned with current and future defense priorities.
In other recent news, Northrop Grumman Corporation reported strong financial results for the second quarter of 2025, exceeding both earnings and revenue forecasts. The company posted earnings per share of $8.15, surpassing the anticipated $6.82, resulting in a 19.5% surprise. Revenue also exceeded expectations, reaching $10.4 billion compared to the forecasted $10.07 billion. Additionally, Northrop Grumman has been awarded a $140,827,737 contract modification to support the production of five E-2D Advanced Hawkeye aircraft for Japan. This modification is part of a previously awarded contract and includes non-recurring engineering efforts tailored to Japan’s configuration of the aircraft. These developments reflect Northrop Grumman’s continued success in securing significant defense contracts and delivering strong financial performance.
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