Northrop Grumman (NOC) Outlook Improves Amid Strong Space and Missile Demand

Northrop Grumman Corporation (NYSE:NOC) is one of the best military tech stocks to buy now. On July 29, Barclays has raised its price target on Northrop Grumman Corporation (NYSE:NOC) to $580 from $500, following a reassessment of its model after the company’s latest earnings report. The firm kept its Equal Weight rating, indicating it does not expect the stock to significantly outperform the market in the near term.

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At the current market price of $566, the new target implies limited upside potential of around 2.5%. While not dramatic, the increase reflects a more favorable view of the company’s forward-looking metrics. Analysts have generally pointed to improved margins, strong free cash flow, and a robust backlog as reasons for increased confidence. In particular, Northrop’s space and missile defense segments have shown strong order trends, helping offset some of the softness in other areas.

However, Barclays sees these positives as largely priced in, or balanced by broader risks such as potential delays in government defense budgets or cost pressures in legacy programs. There’s also increased competition in certain defense tech segments, which could cap near-term growth. Still, the upward revision in target signals that Northrop’s fundamentals remain sound, and its positioning in high-priority defense areas is a strength.

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Disclosure: None.