Baird upgrades Northrop Grumman to Outperform and lifts price target to $675

Baird raised its rating on Northrop Grumman (NOC) from Neutral to Outperform on 21 Oct 2026 and increased its price target to $675, up from $550. The upgrade follows the company’s third‑quarter earnings beat, a strong backlog and multi‑year growth guidance through 2028. Baird also noted that a large charge related to the B‑21 program appears less likely in upcoming quarters.

Baird’s upgrade and higher price target suggest a more favorable risk/reward profile for the stock, which could attract buying interest. The company’s raised 2026 operating‑income outlook and higher EPS guidance indicate stronger earnings expectations, potentially supporting the share price.

  • 1Baird upgraded Northrop Grumman to an Outperform rating on 21 Oct 2026.
  • 2Baird set a new price target of $675 for the stock.
  • 3The previous price target was $550.
  • 4Northrop Grumman reported third‑quarter revenue of $11.1 billion, a 7 % increase year over year.
  • 5Diluted earnings per share for the quarter were $7.89, up from $7.67 a year earlier.
  • 6Baird lifted the 2026 segment operating‑income outlook to a range of $4.94 billion–$5.04 billion, up from $4.85 billion–$5.0 billion.

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