Northrop Grumman stock price target raised to $650 from $625 at RBC Capital

Investing.com - RBC Capital raised its price target on Northrop Grumman (NYSE:NOC) to $650 from $625 on Wednesday, while maintaining an Outperform rating on the defense contractor’s stock. The stock, currently trading at $590.82, has shown remarkable momentum with a 35% gain over the past six months and is approaching its 52-week high of $594.68.

The firm’s updated outlook follows a meeting with Northrop Grumman CEO Kathy Warden and CFO Ken Crews, where management expressed confidence in revenue acceleration during the second half of 2025. With a robust market capitalization of $84.6 billion and annual revenue of $40.5 billion, Northrop Grumman has maintained dividend payments for 55 consecutive years, demonstrating strong financial stability. InvestingPro analysis reveals 12 additional key insights about the company’s financial health and growth prospects.

RBC Capital noted that Northrop Grumman remains "very well positioned" relative to Department of Defense budget priorities, with the B-21 program acceleration receiving strong support from the U.S. Air Force.

The defense contractor’s expected contract finalization for the B-21 program remains on track for the second half of 2025, according to the analyst note.

Northrop Grumman also highlighted potential double-digit international growth prospects that could continue for several years, contributing to RBC’s positive outlook on the company.

In other recent news, Northrop Grumman has reported strong financial performance, with earnings per share of $8.15, surpassing the consensus estimate of $6.84 by 19%. Excluding a one-time gain, the company still exceeded expectations by 4%. This positive earnings report has led RBC Capital to raise its price target for Northrop Grumman to $625, maintaining an Outperform rating. Similarly, Bernstein has increased its price target to $630 from $586, following the company’s stronger-than-expected second-quarter earnings and revenue results.

In addition to financial achievements, Northrop Grumman has completed the delivery of major components for the U.S. Army’s Integrated Battle Command System, fulfilling a Low-Rate Initial Production contract. The delivery included 142 major end items, such as Engagement Operations Centers and Integrated Fire Control Network Relays. The company has also secured a $495 million contract from the Department of Defense for engineering services, with work to be conducted in Oklahoma City.

Furthermore, UBS has reiterated its Buy rating with a price target of $690, citing the potential expansion of the B-21 Raider program, supported by an additional $4.5 billion in funding. These developments highlight Northrop Grumman’s continued success in both financial performance and securing significant defense contracts.

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