Gold prices steady ahead of Fed decision; weekly weakness noted
Investing.com - Truist Securities raised its price target on Northrop Grumman (NYSE:NOC) to $625.00 from $550.00 on Wednesday, while maintaining a Buy rating on the aerospace and defense company. The stock, which has gained over 8% in the past week and is trading near its 52-week high of $567.12, currently shows mixed signals according to InvestingPro analysis.
The price target increase follows Northrop Grumman’s second quarter 2025 results, which showed strong sequential revenue growth driven by robust international demand and progress on the Sentinel program. The $80.83 billion market cap company maintains a solid financial health rating of "GOOD" from InvestingPro, with seven analysts recently revising their earnings estimates upward.
Truist highlighted management’s positive commentary around long-term growth opportunities, free cash flow, and the B-21 bomber program as key factors supporting the higher valuation.
The research firm noted that Northrop Grumman expects second-half 2025 revenues to increase approximately 13% over the first half as both new and existing programs ramp up.
While potential future investments remain a consideration for free cash flow, Truist indicated that Northrop’s 2028 target of $4 billion in free cash flow remains intact, with recent tax law changes in the BBB legislation providing potential upside to that target.
In other recent news, Northrop Grumman Corporation reported impressive financial results for the second quarter of 2025, surpassing both earnings and revenue forecasts. The company posted earnings per share of $8.15, exceeding the projected $6.82, and reported revenue of $10.4 billion, slightly above the expected $10.07 billion. These results reflect a 19.5% surprise in earnings, indicating strong performance. In addition to the earnings news, Northrop Grumman has been awarded a $140 million contract modification to support the production of five E-2D Advanced Hawkeye aircraft for Japan. This contract modification includes non-recurring engineering efforts for the Japan-specific configuration of the aircraft. Furthermore, BofA Securities has raised its price target for Northrop Grumman to $650.00 from $550.00, maintaining a Buy rating on the stock. This upgrade reflects confidence in the company’s progress on key programs, such as the B-21. These developments highlight Northrop Grumman’s ongoing success in securing contracts and achieving financial targets.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.