Stock market today: S&P 500 drops for fifth day as focus shifts to Powell’s speech
Investing.com - UBS has reiterated its Buy rating and $690.00 price target on Northrop Grumman (NYSE:NOC), currently trading at $584.82 and near its 52-week high of $594.68, as the defense contractor continues to perform well on the development and testing of the B-21 Raider aircraft program. The company, with a market capitalization of $83.79 billion, has demonstrated strong momentum with a 36% return over the past six months.
The B-21 Raider program appears likely to expand beyond the current 100 aircraft plan, supported by an additional $4.5 billion in reconciliation funding, according to UBS analysis.
UBS believes the Air Force could achieve higher production rates with greater visibility and lower average unit costs, while simultaneously putting Northrop Grumman in a better financial position to support the production ramp.
The financial firm projects low single-digit upside to revenue and EBIT (earnings before interest and taxes) over the next few years for Northrop Grumman, with potential for double-digit upside to free cash flow estimates for 2026-2028.
UBS notes that details about the program expansion remain scarce, presenting a wide range of potential outcomes for Northrop Grumman’s financial performance related to the B-21 program.
In other recent news, Northrop Grumman has reported impressive second-quarter earnings, with both earnings per share and revenues surpassing consensus estimates. The company’s earnings per share were $8.15, significantly beating the expected $6.84, even when excluding a one-time gain. Following these results, several analyst firms have adjusted their outlooks. Bernstein raised its price target for Northrop Grumman to $630, while RBC Capital increased its target to $625, citing the strong earnings performance. Truist Securities also raised its price target to $625, highlighting growth in the B-21 program and strong international demand.
Additionally, Northrop Grumman secured a $495 million contract with the Department of Defense for engineering services, which will support major defense programs. The company also completed the delivery of major end items for the U.S. Army’s Integrated Battle Command System. These developments reflect Northrop Grumman’s ongoing strategic initiatives and successful execution of defense contracts.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.