Morgan Stanley analyst Kristine Liwag has maintained their bullish stance on NOC stock, giving a Buy rating on April 22.
Kristine Liwag’s rating is based on the comprehensive analysis of Northrop Grumman’s (NOC) current market position and its future prospects. The company’s recent performance has outpaced the S&P 500, demonstrating a solid earnings beat in the first quarter of 2024, which instills confidence in its financial stability. Furthermore, Liwag notes the company’s significant role in the modernization of the Nuclear Triad, particularly through its involvement in key defense programs like the B-21 bomber and the Sentinel project. These programs not only enhance Northrop Grumman’s growth trajectory but also contribute to its robust portfolio resilience, which is critical given the United States’ ongoing efforts to overhaul its nuclear capabilities.
Despite concerns regarding the slowing growth of the space budget, Northrop Grumman’s substantial backlog in its Space Systems division provides a cushion and indicates sustained above-market growth potential. Liwag emphasizes the company’s strategic positioning, allowing it to selectively engage in programs that offer favorable risk-reward scenarios. With a strong backlog and critical defense programs underway, Northrop Grumman is considered to maintain its peer-high growth trajectory, justifying Morgan Stanley’s reaffirmation of an Overweight rating and a price target of $579, solidifying its status as their top defense sector pick.
In another report released on April 22, Alembic Global also upgraded the stock to a Buy with a $532.00 price target.
Based on the recent corporate insider activity of 49 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of NOC in relation to earlier this year.
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Northrop Grumman (NOC) Company Description:
Virginia-based Northrop Grumman Corp. is a global aerospace and defense technology company. It operates through the following business segments: Aeronautics Systems, Defense Systems, Mission Systems, and Space Systems.
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