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Investing.com - RBC Capital has raised its price target on Northrop Grumman (NYSE:NOC) to $625 from $600 while maintaining an Outperform rating following the company’s strong quarterly earnings report. The stock, currently trading near its 52-week high of $567.12, has delivered an impressive 21.25% return year-to-date.
Northrop Grumman reported earnings per share of $8.15, beating consensus estimates of $6.84 by 19%. When excluding a one-time gain of $1.04 in the quarter, the company still exceeded expectations by 4%. According to InvestingPro, seven analysts have recently revised their earnings estimates upward for the upcoming period, suggesting growing confidence in the company’s outlook. The stock currently appears fairly valued based on InvestingPro’s Fair Value analysis.
RBC Capital noted that sentiment heading into the earnings report was mixed due to concerns about whether Northrop Grumman would lower its 2025 guidance because of an implied acceleration in the second half of 2025.
The investment firm viewed commentary on the B-21 and Sentinel programs as positive factors, and expressed confidence in the company’s second-half 2025 sales outlook.
RBC Capital attributed the stock’s strong performance to previously bearish sentiment and highlighted the company’s core nuclear exposure as a factor in improving investor outlook.
In other recent news, Northrop Grumman Corporation reported robust financial results for the second quarter of 2025, surpassing analyst expectations. The company achieved earnings per share of $8.15, significantly beating the forecasted $6.82, and reported revenue of $10.4 billion, which was above the anticipated $10.07 billion. These results reflect strong sequential revenue growth driven by international demand and progress on the Sentinel program. Additionally, Northrop Grumman was awarded a $140.8 million contract modification to support the production of five E-2D Advanced Hawkeye aircraft for Japan, adding to a previously awarded contract.
In terms of analyst activity, Truist Securities raised its price target for Northrop Grumman to $625.00 from $550.00, maintaining a Buy rating, influenced by growth in the B-21 program. Similarly, BofA Securities increased its price target to $650.00 from $550.00, also maintaining a Buy rating, citing market optimism about key programs staying on schedule. These developments underscore Northrop Grumman’s strong market position and continued progress on significant defense projects.
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