Guggenheim raises Northrop Grumman stock price target on growth outlook

RTX, Northrop Grumman, and GE Aerospace reported Q3 earnings, raising full-year guidance. RTX reported $25B sales, $2.26 adjusted EPS, and a $340B backlog. Northrop Grumman reported $11.1B sales, $7.89 EPS, and a $109.6B backlog. GE Aerospace reported $19B orders, $13.3B revenue, and $2.25 EPS. Lockheed Martin and L3Harris are set to report soon. NATO and U.S. defense spending commitments support sector growth.

Baird upgraded Northrop Grumman (NOC) to 'Outperform' from 'Neutral', raising its price target to $675 from $550. The firm cited NOC's strong backlog, Q3 earnings beat, and multi-year growth targets. NOC shares gained over 9% in the past week. 14 of 26 analysts rate NOC a 'Buy' or 'Strong Buy'.

Baird upgraded Northrop Grumman to 'Outperform' with a $675 price target. The rating is based on valuation, EPS revisions, and visibility. The stock has risen 4.57% in 5 days and 10.93% year-to-date.

Australia plans to locally produce solid rocket motors (SRMs) with Northrop Grumman, backed by $126.9 million in initial funding. The SRMs will be used in Lockheed Martin's Guided Multiple Launch Rocket System (GMLRS). Northrop Grumman aims to begin industry engagements for local suppliers, with a 2030 deadline for production. A test flight of an Australian-made SRM was successful in August, developed with Thales.

Northrop Grumman (NOC) reported Q3 revenue of $11.12B (+7% YoY), net income of $1.124B, and EPS of $7.89. Bookings were $16.4B with a backlog of ~$110B and a book-to-bill ratio of 1.5. The company raised its 2026 adjusted EPS outlook, completed the IMS divestiture, and plans to increase B-21 production rates with a $2.5B investment. It also aims to deploy 50 of 150 Space Systems satellites within six months.

Baird upgraded Northrop Grumman (NOC) to Outperform, raising its price target to $675. The defense contractor beat Q3 2026 revenue and EPS expectations, raised annual guidance, and reported a record backlog. Management expects long-term growth through 2028. NOC's stock trades at a P/E ratio of 16.92, with a market cap of $75.9 billion.